MAN -TO -MAN 

Tin:  STORY  or  INDUSTRIAL 

'2MOCKACY 


JOHN  LEITCH 


MAN  TO  MAN 

The  Story  of  Industrial 
Democracy 


BY 
JOHN  LEITCH 


ED  nv  THE 
B.  C.  K)RBKS  COMPANY 

299  BROADWAY,   M.\V  YORK. 


Copyright,  /p/p,  by 
H.  C.  OSBORN 

ALL  RIGHTS  RESERVED,  INCLUDING  THAT  OF 

TRANSLATION  INTO  FOREIGN  LANGUAGES, 

INCLUDING  THE  SCANDINAVIAN 


INTRODUCTION 

T I  IK  whole  future  of  the  United  States  is 
bound  up  in  the  establishment  of  a  happy 
relation  between  tin-  employer  and  the 
employee.  It  mu.st  he  happy  hut  with  the 
happiness  of  united  effort  by  both  ami  not  the 
happiness  of  mute,  unthinking  obedience.  \\  e 
have  need  for  the  brains  as  well  as  the  hands  of 
all  who  are  able  to  work.  In  the  past  we  have 
hat!  only  the  hands;  it  is  high  time  that  we  should 
also  have  the  brains  --have  complete  men  working 
in  a  great  industrial  democracy.  In  this  little 
book  I  have  faithfully  set  down  something  of  the 
theory  and  a  tew  ot  the  cases  arising  out  of  my 
own  conception  of  Industrial  Democracy  in  the 
hope  that  it  will  serve  to  bring  the  attention  of 
both  employer  and  employee  to  the  big  probK  m 
which  confronts  us.  I  have  taken  most  of  the 
incidents  out  of  conditions  arising  from  the  Great 
\\  ar  because  it  is  the  War  that  marks  the  transi- 
tion of  labor  to  a  state  of  economic  independence. 

JOHN  LEITCH. 
New  York,  N:  Y. 
January,  1919. 


TAKLK  OF  CONTEXTS 
CHAPTKR  I 

Till-     F.-UTOKY    WoRKl-.R    OF    ToD AY    ...  3 

I  he  m.m  who  works  and  the  man  who  hire1;  —wherein 
tlirv  difh-r  the  p.r  sin^  ot  the  American  workman  - 
the  foreign-born  fo-dav  make  up  the  body  <>f  our 
workitv:  people  — standardisation  ot  work— repres- 
sion of  nuii\iJu.il  cxpre»Mf>n— the  inception  .uul  the 
abuse  of  welfare  woik  -the  lack  of  interest  and  cart- 
among  workers  t!ie  absence  of  well-conceived 
policies  to  govern  relations  between  employers  and 
employees  the  problem  that  employer.1;  must  .solve. 

CHAPTER  II 
WHY  Mi  N  STRIKI: 16 

I  he  wastage  of  ;.OOO  strikes  •  the  greater  wnsta^o  of 
silent  !i!-\'.ii!  -  r.iiMt1.^  v.ams  witl'.out  r.ii'in::  work 
values —competition  of  labor  and  capt.il  within  :\ 
factory-  -the  il!-v.  ;il  fii.it  m  -nerati  s  strikes  work- 
ers as  rcnf.iMe  comirodities  hov.-  j  m.i :i  is  hire:!  ...".,1 
tiled  -wh.it  IKS  job  h<>K!s  for  him  :e;vrt  of  t!u- 
Mediation  Commission--strikes  are  i!;:-  to  th.e  '.:,'k 
of  a  common  ground  of  understanding  tea •.•!u::^  a 
inutu.;!  under>tandmg  without  uisor^am/mi;  in- 


CONTENTS 

PAOE 

CHAPTER  III 
BUILDING  MEN  TO  BUILD  PIANOS   ...       30 

The  Packard  Piano  Co.,  Fort  Wayne,  Ind. — A  shut- 
down and  the  aftermath — what  ill-will  did  to  the 
product — the  case  of  the  varnishers — the  beginnings 
of  democracy — the  Business  Policy — Justice — Co- 
operation— Economy — Energy — Service — the  first 
dividend — the  improvement  in  quality — inventions 
to  save  labor — the  efficiency  report  from  the  boiler 
room — how  they  met  slack  times — how  168  men  did 
the  work  of  268 — "If  there  is  no  harmony  in  the 
factory  there  will  be  none  in  the  piano." 

CHAPTER  IV 
OUT  OF  A  CONFUSION  OF  TONGUES       .      .       63 

William  Demuth  &  Co.,  New  York — nine  hundred 
aliens  and  how  they  acted  in  the  pipe  factory — the 
making  of  a  briar  pipe — what  aliens  think  of  an  em- 
ployer and  the  resentment  they  put  into  their  work — 
putting  over  the  idea  of  Justice — how  they  received 
the  dividend  system — the  organization  of  the  House 
of  Representatives  and  Senate — the  initial  dividend 
— how  the  men  cut  down  absenteeism — removing 
an  incompetent  foreman — the  barring  of  alien 
tongues — fixing  their  own  piece  rates — the  case  of 
the  superintendent — the  taming  of  Rosa — making 
an  art  out  of  patching — cutting  out  the  labor  turn- 
over— the  improvements  in  methods  that  came  from 
the  men — eliminating  seconds — a  remarkable  in- 
crease in  production. 

CHAPTER  V 

THE  SUPERVISION  THAT  COUNTS        ...     92 

Sidney  Blumenthal  &  Co.,  the  Shelton  Mills,  Shel- 
ton,  Conn. — the  half  million  dollars  in  spoiled  vel- 


CONTENTS 

vet* — the  management's  efforts  to  cut  down  waste 
and  the  failure  of  cooperation  the  call  of  war  work 

—  the   character   of  the   employees    -what   was   the 
matter  with  the  goods     the  re|x>rtf  that  the  House 
Committee    brought    in    on    Ix-ttering    condition-, 
getting  at  the  reasons  for  seconds     wh.it  the  work- 
ers think  of  piece  rates  and   the  quantity   bonus 
the    evolution    of    the    quality    bonus     quality    vs. 
quantity      how  the  quality  bonus  workrd  -  quantity 
went  up  with  quality     saving  waste  paper — "Saving 
Waste  Increases  Pay." 

CIIAPTF.R  VI 
MUST  A  FOR i- MAN   Hi:  A  PUGILIST?       .      .      in 

The  hard-fisted  blacksmith  who  built  a  foundry — the 
rule  of  force  and  how  it  worked — when  the  workers 
got  the  upper  hand —the  drop  in  production— wage 
increases  that  lowered  production — the  coming  of 
Industrial  Democracy — ceasing  to  work  as  individ- 
uals—  the  wage  hold-up  that  failed — a  IO  per  cent, 
economy  dividend — the  Mutual  Benefit  Association 
— eliminating  imperfect  castings— the  story  of  the 
"cupola  man" — the  inspector  that  they  apjxmitcd 
for  themselves — a  5^  per  cent,  increase  in  production 

—  the  fall  in  labor  turnover. 

CHAPTER  VII 
INDUSTRIAL  DEMOCRACY 133 

The  universal  application — the  birth  of  Industrial 
Democracy— wages  and  work — the  first  experiment 
-  -the  fundamentals— definitions — details  of  organ- 
i/ation — the  Cabinet  -the  Senate — the  House  of 
Representatives  —adjusting  wages — the  Business 
Policy  of  Justice,  Economy,  Energy,  Cooperation, 


CONTENTS 

PACE 

and  Service — taking  good  intentions  out  of  the  pas- 
sive— definition  of  manufacturing — the  human  as- 
set— the  common  aims  of  Labor  and  Capital — the 
right  payment  of  workers — the  place  of  money — the 
evils  of  the  production  bonus — the  necessity  for  a 
fluctuating  addition  to  wages  based  upon  service — 
the  failure  of  profit-sharing — the  Collective  Economy 
dividend. 

CHAPTER  VIII 

INDUSTRIAL   DEMOCRACY,  THE  EMPLOYEES, 
AND  THE  UNIONS 169 

The  five  changes  which  Industrial  Democracy  always 
brings  about — transforming  the  unskilled  worker — 
quality  vs.  quantity — some  production  records — the 
suspicions  of  the  workers — how  to  overcome  them — 
selling  the  idea  of  fair  play — introducing  democracy 
— how  the  workers  use  their  power — a  model  appeal 
— how  the  foremen  act — responsibility  in  hiring  and 
firing — how  the  men  take  charge  of  labor  turnover — 
there  cannot  be  strikes  from  within — never  a  strike — 
the  attitude  of  the  unions. 

CHAPTER  IX 
INDUSTRIAL  DEMOCRACY  AND  THE  EMPLOYER     194 

Corporation  managers  should  not  indulge  in  social 
experiments — the  dangers  of  laisscz  faire — the  labor 
outlook — the  need  for  a  new  relation — business  is 
propelled  by  human  force — founding  upon  a  princi- 
ple— labor  troubles  at  the  root  of  business  troubles — 
the  public  is  a  party — how  Industrial  Democracy 
strengthens  the  investment — how  it  affects  manage- 
ment— the  two  cases  in  which  once  tried  it  lias  been 
abandoned — an  insurance  of  capital — what  it  does. 


CONTENTS 

MU 

CHAPTER  X 
KI:I:PIM;  Aim:  THI.  COMMUNITY  SPIRIT    .     213 

Industrial  Democracy  11  nut  self-propelling  -  there 
.irr  always  scolK-is  the  usr  of  message*  and  licilic 
organs —advertising  t!ir  idea -the  kind  that  pu!!-.  -- 
i  Dinniuiiu  atiatis  to  thr  I  louse  aiul  Senate— the  pivc 
and  t.ikc  attitude—  food  for  vanity — the-  power  of  the 
\\  rittcn  word. 

CHA1TKR  XI 
PtTriNi;  I.M-.OR  HI-HIND  AMI-RICA   .      .      .     221 

Industrial  Democracy  mukrs  Americans — our  pres- 
ent state  of  Americanism  l.u-k  of  intense  national- 
ism— after  the  war -relation  of  prosperity  and  the 
national  spirit— how  Industrial  Democracy  Lindlcs 
the  national  spirit  of  democracy— insistence  of 
workers  ti|x>n  a  single  language — the  political  pro- 
gression—Industrial Democracy  is  an  Americanizing 
force — an  industrial  union. 


-o 


MAN  TO  MAN 


Man  to  Man,  The  Story  of  Industrial 
Democracy 

CIIAITKR  I 

Till-     FACTORY    WORK I R    OF    TOP  AY 

HAYK  we  not  talked  ratlu-r  too  much  about 
working  people  as  a  class  and  too  little  of 
thorn  as  human  individuals? 

"Labor"  and  "capital"  arc  convenient  terms, 
but  insensibly  the  terminology  leads  us  into  think- 
ing that  all  people  who  work  j>.r  money  belong 
to  one  species  and  all  people  who  work.  ::;:/: 
money  to  anotlu  r. 

Perhaps  from  the  detached  viewpoint  <>i  the 
economist,  you  may  take  labor  as  one  thing  and 
capital  as  another,  bur  \\htn  you  come  clown  to 
specific  problems  in  modern  ir.v!i:s:rv  YOU  l:r.d 
that  you  have  to  dial  not  \\ith  broad,  c;:?.rr;.ble 
forces  but  with  a  more  or  less  miscellaneous  col- 
lection ot  individuals,  some  o!  whom  h..;^pe:i  to 
be  employers  and  others  employees.  A;-.J.  asiile 
from  some  differences  in  clothing,  education,  and 


4  Man  to  Man 

money  the  capitalist  and  the  laborer  are  really 
pretty  much  alike.  In  fact,  I  think,  if  you  strip- 
ped any  organization  and  turned  it  out  into  a  field 
you  might  have  quite  a  little  trouble  cutting  out 
the  employers  from  the  employees!  It  is  easy 
enough  to  distinguish  the  common  laborer  in  the 
packing  house  from  the  great  capitalist  in  Wall 
Street  if  both  are  dressed  and  are  in  their  usual 
environments.  When  a  mechanic  hires  two  help- 
ers on  a  job,  however,  and  all  three  are  working 
together,  you  are  put  to  it  to  discover  which  is 
the  representative  of  capital  and  which  of  labor. 
The  man  who  was  a  worker  yesterday  may  be  an 
owner  today.  Schwab,  Ford,  Eastman,  George 
F.  Johnson,  and  dozens  of  other  men  who  are  to- 
day known  as  great  employers  of  labor  were  work- 
ers only  a  few  years  ago — were  part  of  that  which 
the  socialists  would  like  to  impose  on  us  as  the 
proletariat.  If  you  fall  into  the  error  of  thinking 
that  capital  and  labor  are  differentiated  in  blood 
just  call  the  roll  of  the  employers  and  find  out  how 
many  of  them  once  were  "workers." 

It  is  not  easy  to  get  down  to  the  man-to-man  view; 
a  countless  number  of  today's  workers  seem  to  be 
scarcely  human.  In  recent  years,  with  the  dwind- 
ling of  English  and  Irish  immigration,  the  workers 


Iiulustri.il   Democracy  5 

have  been  recruited  from  peoples  with  whom  we 
recogni/e  little  in  common  from  the  Italian 
peasants  ami  from  the  uncouth  dwellers  in  Russia 
ami  Southern  Kurope.  'I  hese  were  people  who, 
in  their  native  lands,  saw  no  future.  They  came. 
here  bearing  hopes-  inarticulate,  perhaps-  of  a 
freedom  that  could  open  a  future.  In  our  eyes  they 
were  brutish;  they  herded  like  so  many  animals 
and  we  began  to  think  of  them  as  such,  lluir 
names  were  commonly  so  outlandish  and  their 
personalities  so  insignificant  to  us  that  we  did  not 
attempt  to  note  them  on  the  pay  rolls  -it  was 
enough  to  designate  them  by  numbers  We  for- 
got they  were  human  beings.  Americans,  refus- 
ing to  work  with  these  foreigners,  gradually  drop- 
ped out  of  the  large  industrial  units  or  advanced 
to  positions  as  foremen  or  executives.  For 
instance,  only  ten  per  cent,  of  the  employees  in 
the  Chicago  Stock  Yards  are  American.  An 
investigating  commission  found  26  separate  na- 
tionalities in  one  Arizona  mining  camp  and  32  in 
another. 

With  a  million  of  these  polyglot  workers  pour- 
ing in  every  year  readv  to  take  any  jobs  at  any 
wages,  the  whole  face  of  industry  changed.  It 
took  us  a  while  to  find  out  what  really  was  going 


6  Man  to  Man 

on.  Then  we  awoke  to  the  fact  that  between  the 
employer  and  the  employee  had  been  erected  a 
barrier  of  race  and  language.  Instead  of  the  old 
order  in  which  the  employees  knew  their  employer 
as  the  "Boss"  and  called  him  by  his  first  name, 
came  a  new  order  in  wThich  the  "boss"  was  an 
impersonal  being  whom  the  workers  did  not  know 
by  sight.  There  sprung  up  a  kind  of  half  military 
organization  in  which  the  chief  owner  was  a  field 
marshal,  the  executives  were  generals,  and  the 
workers  only  privates — and  they  meant  just 
about  as  much  to  the  field-marshal  owner  as  does 
a  private  soldier  where  there  is  military  caste. 
The  old  order  had  passed  and  in  great  establish- 
ments there  was  a  wide  social  gulf  between  the 
employer  and  the  employee.  The  gulf  would 
have  been  wide  enough  anyhow  owing  to  the  class 
distinctions  which  the  new  immigrants  brought 
with  them,  but  it  was  widened  further  by  the 
peculiar  development  of  the  processes  of  industry. 
Professor  D.  S.  Kimball  presents  the  situation 
very  accurately  in  an  article  in  Industrial 
Management  in  which  he  says : 

Changes  in  industrial  methods  are  followed  necessarily  by 
changes  in  the  status  of  the  worker;  so  far  as  industry  itself 
is  concerned,  and  by  changes  in  his  social  status  as  well.  Ic  • 


Industrial   Democracy  7 

duttri.il  changes  and  thrtr  effect*  come,  usually,  with  great 
rapidity,  but  social  changes  arc  likely  to  follow  very  *lov*-|y 
ami  only  because  of  jjreat  effort  on  thr  part  of  tho«-  interested. 
Invention  and  it*  eHetts  always  greatly  outrun  the  MKi.il 
changes  that  inevitably  follow  in  their  wale.  1  he  industrial 
revolution  at  once  separated  the  worker  from  the  tool*  of 
industry-  No  longer  could  he  compete  as  an  independent 
operator  using  handicraft  tools,  but  he  was  compelled  tt> 
depend  for  employment  upon  capital,  which  alone  could  pro- 
vide the  new  implements  of  production.  At  the  same  time 
this  revolution  broke  up  the  old  social  order,  destroying  the 
old  friendly  paternal  relations  between  master  and  man,  but 
provided  nothing  to  take  their  place.  1  he  problem  before 
us  is  to  rind  the  conditions  that  will  reestablish  satisfactory 
industrial  and  social  relations. 

It  the  worker  of  today  had  to  depend  upon  medieval  ideals 
as  to  his  place  in  the  world  his  condition  would  undoubtedly 
be  much  worse  than  it  now  is.  It  was  quickly  recogni/ed  that 
these  new  methods  greatly  increased  man's  productive 
capacity  but  at  the  same  time  it  was  as  quickly  recogm/ed 
by  advanced  thinkers  that  these  methods  carried  with  them 
no  regulative  principle1!  that  guaranteed  fair  distribution  »f 
these  added  benefits.  It  was  quickly  .seen  that  the  old  rela- 
tions were  not  adequate  for  these  new  conditions,  .irul  it  was 
quickly  proven  that  the  industrial  classes  could  not  depend" 
upon  the  good  will  of  individuals  or  group-?  of  CM;;-!  >ycrs 
fir  fairru-s*  or  even  decent  protection  against  the  e\  i!s  of  mod- 
ern industrial  methods. 

Employers  wi-re  not  inhuman;  tlu-y  simply 
couIJ  not  realize  what  li.ul  happened,  \\hen 
they  did  get  their  bearings  a  kind  r.t  stvial  eon- 
sci'.msness  began  to  devi-lop.  Movi-d  partly  by 
the  desire  to  have  more  intelligent  pcvplr  to  deal 


8  Man  to  Man 

with,  and  partly  by  a  feeling  of  benevolence,  they 
formed  plans  to  better  working  conditions.  This 
first  welfare  work  was  almost  purely  philanthropic. 
It  was  generally  felt  by  even  the  fairest  minded  of 
employers  that  raising  wages  would  be  a  positive 
disservice  to  the  people  because  they  would  not 
know  what  to  do  with  the  extra  money  and 
would  probably  spend  it  in  riotous  living.  Most 
employers  reasoned  somewhat  in  this  fashion: 
"The  people  have  accustomed  themselves  to  a 
scale  of  living  nearly  as  low  as  that  in  which  they 
had  been  reared  in  Europe;  they  have  no  desire 
for  anything  better.  What  they  do  want  is  more 
to  drink  and  more  days  on  which  to  get  thoroughly 
drunk;  their  women  want  gaudier  clothing,  but 
none  of  them  have  any  desire  to  live  a  more 
human  and  less  animal  existence.  They  do  not 
want  to  be  clean  or  to  be  orderly,  or  to  read,  or  to 
exercise,  or  to  play  games."  The  improvements 
in  the  standard  of  living  among  immigrants  did 
not  spring  from  their  natural  desires  but  were,  at 
the  first,  imposed  upon  them  almost  by  force,  by 
the  employers.  The  employers  took  the  paternal 
attitude  that  the  people  would  not  help  themselves 
and  therefore  had  to  be  helped.  That  is  the  idea 
behind  the  first  welfare  work,  and  those  employers 


Iiuiustri.il   Democrat)  9 

who  introduced  welfare  wotk  should  be  given  due 
credit . 

We  sometimes  forget  that  lute  in  America,  in 
what  \ve  are  pleased  to  call  a  fire  country,  we  had 
a  %  .nt  number  of  people  who  were  little  more  than 
serfs,  because  they  could  not  comprehend  any 
other  way  of  working.  'I  hey  worked  in  America 
exactly  as  they  had  worked  in  Kuropr —  with  little 
vision  and  without  responsibility  , grubbing  through 
from  day  to  day,  and  mightih  glad  to  have  enough 
to  eat.  I  he  tirst  welfare  work  was  a  brave  expcii- 
ment—  but  not  because  those  who  instituted  it 
saw  that  the  mental  development  of  the  workers 
would  create  new  problems.  It  was  brave  because 
it  seemed  to  be  a  throwing  away  of  money  which 
had  always  been  taken  as  profit.  When  J<-hn  II. 
Patterson  insisted  that  Ins  factories  ih<'uK!  be 
flooded  with  light,  that  machines  should  IT  spot- 
lessly clean,  and  that  workers  should  be  personally 
clean,  his  associates  thought  that  he  wa>  c:a/\. 
And  other  employers  in  Dayton  jeeringly  wanted 
to  know  if  he  was  sure  of  what  he  was  doing  and 
had  not  absent-mindedly  started  a  finishing  school 
for  young  ladies. 

In  the  beginning,  welfare  work  was  thus  a  truly 
zharitable  uplifting  of  European  peasants;  mci- 


c 


io  Man  to  Man 

dentally  it  proved  to  be  good  business.  It  was 
found  that  it  was  short  sighted  to  expect  good 
work  from  undernourished  human  beings  laboring 
in  a  dark  filthy  hole.  Even  those  employers  with 
no  social  consciousness  were  quick  enough  to 
perceive  the  investment  return  on  welfare  work 
and  at  once  plunged.  It  was  cheaper  to  maintain 
a  few  baseball  fields  than  to  add  a  dollar  a  week  to 
the  wages  of  ten  thousand  men.  The  mathematics 
were  all  in  favor  of  the  welfare  work.  They  began 
to  substitute  it  for  wages  and,  unfortunately, 
the  welfare  work  that  was  good  gained  practically 
the  same  disfavor  as  that  which  sprang  from 
unworthy  motives. 

The  tendency  of  employers  was  to  become  more 
and  more  paternal  and  of  the  employees  to  become 
more  and  more  dissatisfied.  When  you  teach  a 
man  to  bathe,  you  do  more  than  merely  teach  him 
to  cleanse  his  body.  You  introduce  him  to  a  new 
kind  of  life  and  create  in  him  a  desire  for  better 
living  and  then,  of  course,  he  requires  higher 
wages  in  order  to  satisfy  the  new  desires.  The 
paternal  employers  thought  that  the  living  oppor- 
tunities which  they  provided  should  be  enough 
and  that  the  workers  ought  to  be  satisfied  with 
clean  homes  and  clean  places  in  which  to  work; 


Industrial   Democracy  11 

they  did  not  know  that  they  had  starml  something 
which  they  could  not  stop.  lh<-.e  \sho  had  gone 
into  the  bettering  of  indiistn.il  conditions  solely 
from  a  financial  standpoint  felt  that  they  had 
made  a  wroni;  i;uess,  while  those  who  had  been 
animated  solely  by  charity  wen-  deeply  hurt  to 
think,  that  their  benefactions  had  not  been  appre- 
ciated. I  recall  one  manufacturer  telling  me  as  ;;n 
instance  of  "  no  matter  what  you  do  tor  them  they 
won't  appreciate  it"  that  he  had  actually  loaned  em- 
ployees in  the  a^rc^ate  a  very  considerable  sum  of 
money  to  tide  them  over  a  period  when  the  factory 
was  closed  and  that  some  of  the  •workers  had 
been  so  rude  as  to  tell  him  that  if  he  knew  how 
to  run  his  business  he  would  not  have  to  close 
«t  down! 

The  paternal  idea  persists.  Employers  think 
that  in  many  cases  they  arc  public  benefactors 
because  they  provide  work.  'I  hey  do  not  seem  to 
realize  that  they  could  not  make  money  it"  thev  did 
not  have  the  work  to  provide.  'I  he  workers,  on  the 
other  hand,  have  also  developed  a  class  conscious- 
ness and  resent  paternalism.  'I  in;,  have  found  that 
by  mass  action  they  can  make  or  unmake  the 
employer  and  set  themselves  up  as  a  kind  of  com- 
modity of  a  market  value  fluctuating  \\iih  the 


12  Man  to  Man 

times.  The  labor  leaders  resent  any  classification 
of  their  people  as  a  commodity  and  prefer  the  term 
"collective  bargaining."  It  does  not  make  much 
difference  how  we  describe  the  attitude,  the  point 
to  bear  in  mind  is  that  the  worker  very  properly 
takes  the  position  that  his  wages  are  not  largesse, 
that  it  is  not  a  favor  for  any  one  to  hire  him  but 
that  it  is  really  a  pure  business  proposition — a 
bargain  and  sale. 

Collective  bargaining  and  trade  unionism  pro- 
tect against  paternalism,  against  the  cheating 
employer  (of  whom  there  are  some  although  for- 
tunately not  many)  and  help  to  add  to  the  dignity 
of  employment  by  putting  it  on  a  business  basis. 
Trade  unionism  likewise  holds  dangers.  In  order 
to  attract  members  many  organizers  have  talked 
wildly  and  tried  to  persuade  the  people  that 
there  is  such  a  thing  as  "labor"  and  that  its 
chief  duty  is  to  fight  a  thing  called  "capital." 
This  acute  class  consciousness  has  not  yet  gone 
so  far  here  as  in  England,  but  its  growth  is  being 
helped  not  a  little  by  the  employers  talking  about 
labor  in  exactly  the  same  way  that  the  unions  talk 
about  capital.  The  further  sinister  development 
is  the  attempt  to  destroy  the  individuality  of  the 
worker  by  putting  all  upon  the  same  level,  by 


Industrial   Democracy  13 

requiring  that  a  man  shall  not  produce  more  than 
a  certain  amount  within  a  en  tain  time,  and  by 
short -sightcdly  opposing  the  introduction  of  labor- 
saving  machinery  which  must,  in  the  end,  really 
add  to  the  dignity  and  power  of  labor. 

Thus  we  find  a  kind  of  new  alignment,  not  very 
definite  as  yet  but  growing  moie  definite.  The 
employee  works  for  the  money  that  he  can  get. 
lie  knows  perfectly  well  that  if  he  does  not  look 
after  his  own  money  no  one  else  will;  he  lias  taken 
his  regard  from  the  work  itself  to  the  money 
that  he  can  get  for  it  and  he  finds  nowhere  a 
community  of  interest  with  the  man  who  pays 
him  the  money. 

What  is  the  result  of  all  this?  The  first  result 
is  that,  lacking  any  incentive  other  than  the  money 
the  worker  will  listlessly  return  just  that  amount 
of  exertion  which  will  obtain  the  money.  He 
feels  himself  fettered,  unable  to  express  himself, 
and  can  see  no  chance  to  get  ahead,  lor,  if  he 
has  classified  himself  as  "labor"  and  as  having  a 
market  price  he  cannot  see  how  it  is  possible  ever 
to  get  out  of  the  class  or  to  command  much  more 
by  great  exertion  than  he  is  now  earning  by  little 
exertion.  He  wants  to  give  the  least  that  he  can 
in  return  for  the  money  paid  to  him.  It  is  up  to 


14  Man  to  Man 

the   employer  then   to   get   his   money's   worth. 
He  drives  while  the  worker  sulks. 

Both  the  employer  and  the  employee  are  gov- 
erned by  the  same  impulses  and  the  one  is  no  more 
culpable  than  the  other — they  simply  have  not 
gotten  to  a  place  where  they  can  converse  with 
each  other  in  the  same  language  and  form  a  part- 
nership. The  employee  thinks  that  the  employer 
is  grinding  him  down  for  his  own  personal  profit; 
the  employer  thinks  that  the  employee  is  a  "gold 
brick  artist."  They  are  mutually  distrustful  and 
the  result  is  petty,  irritating  incidents  that  de- 
velop distrust.  The  employer  likes  to  dodge  the 
situations.  As  a  writer  in  the  New  Republic  said 
not  long  since: 

If  a  survey  could  be  made  of  the  minds  of  a  thousand  Ameri- 
can manufacturers  at  random,  and  a  report  gathered  of  their 
prevailing  practices  in  dealing  with  labor,  it  would  probably 
be  a  rudimentary  affair.  When  orders  are  abundant,  as  at 
present,  hire  as  many  men  as  you  can  get  at  the  market  rate. 
If  you  can't  get  enough  at  this  rate,  pay  a  little  more  than 
your  neighbor.  Work  the  men  longer  hours.  If  they  become 
dissatisfied,  give  them  a  little  more  money.  If  this  process 
forces  wages  too  high,  recoup  in  two  ways:  charge  higher  prices 
and  introduce  cheaper  labor  wherever  you  can,  especially 
women.  If  that  gets  you  into  trouble  with  the  unions,  keep 
your  shops  non-union  as  far  as  possible,  appeal  to  the  patriot- 
ism of  your  employees,  blame  seditious  agitators  for  all  strikes 
and  demand  industrial  conscription  from  the  government. 


Industrial   Democracy  15 

This  is  an  overdrawn  description  but  it  has  some 
elements  of  accuracy.  It  reveals  the  big  fact  — 
which  all  of  us  like  to  dodge— that  there  exists  no 
general,  definite  labor  policy.  It  is  true  that 
employment  managers  have  done  much  toward 
helping  to  found  policies,  but  generally  they  are 
easily  over-ruled  by  higher  executives  on  the 
points  that  are  really  important.  Hut  they  seek 
to  adjust  existing  conditions  as  between  C.<i'-:.:al 
a  nil  I.al'Or,  accepting  the  two  as  distinct  entities. 
They  cannot  formulate  a  new  basis  of  understand- 
ing because  that  is  generally  held  to  be  beyond 
the  proper  scope  of  their  duties.  And  finally 
(and  I  think  this  is  the  greatest  obstacle  they 
have  to  \\ork  against)  they  are  apt  to  be  hired  by 
the  executives  in  the  hope  that  thus  they  can  dis- 
miss the  bothersome  detail  of  labor. 

What  is  really  the  trouble?  Is  there  no  way  of 
forming  a  new  relation  instead  of  tinkering  with 
the  old? 

I  he  problem  before  us  is  to  provide  n  new 
relationship  between  employer  and  employee. 
\\  e  cannot  bring  back  the  old  conditions;  the 
present  conditions  are  intolerable.  We  must 
create  a  new  set  of  conditions. 


CHAPTER  II 

WHY   MEN    STRIKE 

IN  THE  year  1917  nearly  5,000  strikes  were  re- 
ported. Probably  twice  as  many  small  strikes 
and  "near  strikes"  did  not  come  to  official  notice. 
In  the  State  of  New  York,  in  the  period  from 
October  i,  1915,  to  June  30,  1916  (which  period 
I  take  because  it  preceded  our  entrance  into  the 
war  and  it  marks  only  the  beginning  of  the  upset 
of  the  relation  between  employer  and  employee) 
there  were  328  strikes  involving  a  quarter  of  a 
million  people,  who  lost  in  all,  9,581,163  days. 
If  you  happen  to  have  a  mathematical  turn  of 
mind,  you  can  calculate  nearly  how  much  of  the 
time  of  American  labor  was  spent  in  fighting  em- 
ployers. Or,  rearranging  the  figures,  you  can 
roughly  ascertain  the  idleness  of  the  industrial 
investments  of  the  country  because  their  control- 
lers could  not  find  any  one  to  help  develop  them. 
One  might  also  arrive  at  a  money  total  of  the  wages 
and  profits  lost.  But  the  total  that  you  cannot 

even  estimate  is  the  production  lost  through  ill- 

16 


Industrial  Democracy  17 

will  before  the  actual  strikes  and  after  their  sup- 
posed settling. 

It  is  less  expensive  to  have  men  belligerently 
"out"  than  to  have  them  sullenly  "in."  The 
I. WAV.  who  understand  human  nature,  brilliantly 
evolved  the  "strike  on  the  job"  as  a  device  to 
irritate  the  employer  without  affording  him  a 
concrete  point  to  combat.  When  men  strike  on 
a  job  they  devote  their  minds  to  doing  as  litrlr  as 
possible  in  a  day  and  doing  that  little  as  badly  as 
ingenuity  will  devise.  Almost  any  employer 
prefers  an  out  and  out  strike  with  rioting  and  vio- 
lence to  the  insidious  crippling  of  .the  "strike  on 
the  job." 

Take  the  production  loss  through  actual  strikes, 
whether  on  or  off  the  job,  and  you  have  an  appal- 
ling figure.  But  if  any  means  could  be  had  of 
calculating  the  total  effects  of  the  ill-will  that  did 
not  develop  into  actual  breaks  or  that  succeeded 
unsatisfactory  settlements  the  results  would  be 
even  more  startling.  My  own  opinion  is  that, 
considering  the  country  as  a  whole,  we  have  not, 
during  the  past  ten  or  fifteen  years,  secured  more 
than  4Or('  of  our  labor  efficiency;  that  is,  we  have 
wasted  probably  6or('  of  our  manufacturing  ca- 
pacity. This  is  a  stupendous  waste — far  greater 


1 8  Man  to  Man 

than  the  wastage  of  war  and  it  acts  and  reacts 
through  our  whole  national  organization.  It  pre- 
vents a  just  measurement  of  wages,  lengthens 
hours  unduly,  and  makes  production  costs  and 
consequently  sales  prices  unreasonable.  The 
average  commodity  going  through  no  particularly 
minute  fabrication  doubles  in  price  from  the  raw 
material  to  the  consumer  simply  because  it  must 
carry  the  expense  of  human  waste.  Every  worker 
and  employer  are  also  consumers,  so  this  deplor- 
able state  of  affairs  hits  everybody.  Is  not  then 
this  question  of  eliminating  ill-will  between  em- 
ployer and  employee  and  consequently  the  cause 
of  most  human  waste  the  vitally  important  one 
in  the  country? 

The  casual  onlooker  thinks  no  labor  trouble 
exists  without  a  strike — that  industrial  peace  and 
"no  strike"  agreements  are  synonymous;  the 
country  is  flooded  with  mediation  and  arbitration 
boards  busy  with  the  settlement  of  specific  dis- 
putes. They  take  testimony,  inquire  into  the 
cost  of  living,  and  conscientiously  endeavor  to 
give  fair  decisions.  They  do  commonly  get  the 
men  back  to  work.  But  if  a  substantial  raise  in 
wages  Is  a  part  of  the  compromise  (and  it  generally 
is)  no  sooner  has  the  award  been  made  than  an- 


Industrial  DcrmxTacy  19 

other  group  hears  of  the  increase  and  it  too  wants 
more  wages.  In  every  case  the  increased  wages 
are  paid  without  regard  to  increased  efficiency 
and  hence  the  cost  is  passed  directly  on  to  the 
puhlic;  the  price  of  living  moves  up  a  notch  and 
before  the  mediators  have  finished  their  swing 
around  the  circle  they  find  that  the  price  of  com- 
modities has  so  risen  that  the  higher  wages  no 
longer  are  adequate  and  the  marking-up  process 
has  to  begin  all  over  again. 

The  public  mediation  commissions  arc  import- 
ant, because  they  recogni/.e  that  the  relation  be- 
tween empl6ycr  and  employee  is  no  longer  a  pri- 
vate afiair  and  also  they  help  to  avoid  actual  dis- 
order in  industrial  disputes.  They  are  an  un- 
fortunate necessity  of  the  times  but  they  are  of 
no  use  in  effecting  more  than  a  surface  peace. 
'I  hey  do  not  and  they  cannot  go  to  the  root  of 
the  mutter- -that  is,  they  cannot  replace  the 
ill-will  with  good-will— and  irulced,  in  this  re- 
spect they  have  a  deterring  Jn'luence  because 
they  serve  to  persuade  all  parties  that  labor 
disputes  arc  properly  to  be  decided  through  pro- 
cess of  law  rather  than  on  the  plain  common 
sense,  man-to-man,  basis.  They  serve  to  con- 
firm the  idea  that  capital  is  cne  thing  and  labor 


2O  Man  to  Man 

another  and  that  any  peace  between  them  should 
be  founded  on  negotiation  rather  than  on  justice 
and  cooperation.  I  can  see  ahead  nothing  but 
disaster  if  we  accept  as  a  fact  that  the  natural 
relation  between  employer  and  employee  is  one  of 
competition  and  war  and  that  their  rights  are  to 
be  adjudicated  either  through  trial  of  battle  or 
trial  at  law. 

Let  us  grant  that  mediation  and  arbitration 
boards  are  a  necessary  evil — that  they  are  doctors 
who,  if  they  cannot  cure,  may  at  least  administer 
an  opiate  to  take  the  edge  off  the  patient's  misery. 
We  used  to  think  the  big  function  of  a  medical 
man  was  to  cure;  now  we  know  that  it  is  to  pre- 
vent. Would  we  have  given  any  particular 
credit  to  Surgeon  General  Gorgas  if,  instead  of 
taking  fever  out  of  the  Canal  Zone,  he  had  built 
a  series  of  splendid  hospitals  so  that  the  victims 
might  comfortably  be  cured?  Is  there  not  room 
for  practicing  a  little  preventive  strike  medicine? 

Strikes  are  culminations  of  ill-will.  Look  at 
them  from  that  angle.  Take  the  328  strikes  in 
New  York;  270  of  them  were  for  wages,  26  for 
union  recognition,  13  for  shorter  hours,  and  5  for 
bad  working  conditions.  Those  for  bad  working 
conditions  may  be  dismissed  at  once;  the  employer 


Industrial   Democracy  21 

who  will  nor  voluntarily  provide  a  decent  working 
place  is  to  be  considered  as  an  industrial  outlaw,  a 
menace  to  the  community,  and  to  be  treated  as 
such.  The  wages  and  the  Iwuirs  are  matters  of 
easy  adjustment,  if  there  is  a  mutual  interest  and 
understanding  between  the  parties.  It"  tin-  em- 
ployer and  the  employee  are  working  together  the 
efficiency  of  the  unit  will  be  so  great  that  wages 
can  be  paid  with  respect  not  to  the  market  ran-, 
but  to  the  productive  power.  I  his  productive 
power  will  be  so  high  that  wages  will  always  be 
far  in  excess  of  the  market  figure  and  a  continuous 
balance  between  wage  and  profit  can  be  main- 
tained. This  eliminates  wage  disputes.  By  the 
same  token,  hours  adjust  themselves;  the  mutual 
spirit  of  fairness  will  regulate  the  hours  by  what 
the  job  requires.  1  hese  questions  out  of  the  way, 
union  recognition  becomes  a  purely  personal  mat- 
ter. If  the  employer  and  the  employee  have  a 
convenient  and  just  means  for  settling  differences 
as  they  arise,  it  is  small  matter  whether  or  not 
the  union  be  recognized.  For  the  workers  in 
fairness,  although  union  members,  will  nor  counte- 
nance any  itrjust  interference  by  the  union. 

Unions   were   created    to   gain    justice    for   the 
workinc  man.     \Vhen  thev  make  unjust  demands, 


22  Man  to  Man 

as  sometimes  they  do,  the  cause  will  be  found  in 
the  existing  ill-will  of  the  people  responding  to 
demagoguery.  I  have  yet  to  discover  a  case  of 
union  interference  sanctioned  or  upheld  by  the 
workers  where  there  were  not  already  discontent 
and  trouble.  Get  these  positions  in  mind.  If 
the  employer  thinks  of  workers  merely  as  rentable 
commodities,  the  employee  will  think  of  him  only 
as  a  rent  payer  and  will  be  glad  to  have  the  assis^ 
tance  of  a  union  business  agent  to  raise  the  renting 
terms.  If,  however,  there  is  a  common  feeling  of 
cooperation  instead  of  competition,  there  will  be 
no  room  for  any  one  who  tends  to  disturb  that 
cooperation. 

Trace  how  a  worker  begins  his  connection  with 
the  plant,  find  out  what  the  average  job  holds  for 
him  and  then  I  think  it  will  not  be  surprising  that 
he  has  no  fellow  feeling  for  the  employer.  Until 
there  began  to  be  an  apparent  shortage  of  workers 
few  concerns  had  employment  offices.  The  com- 
mon procedure  was  for  a  foreman  to  go  down 
among  the  throng  of  unemployed  at  the  gates,  or 
(if  the  management  did  not  happen  to  like  a  crowd 
around)  herded  into  a  barn-like  structure  called 
an  employment  office.  Suppose  he  wanted  five 
turret  lathe  operators.  He  would  yell: 


Industrial   Democracy  23 

"Any  of  you  fellows  that  e\ei  run  a  turret 
lathe  stand  over  line." 

The  line  would  form  and  the  foreman  would 
make  his  selection  by  the  simple  process  of  pointing 
his  ringer  at  the  selected  candidates  and  barking: 
"Here,  you." 

If  the  foreman  actually  needed  five  men  prob- 
ably he  would  pick  our  ten  and  at  the  end  of  the 
da)'  fire  all  those  who  did  not  seem  promising. 
Some  of  the  men  would  undoubtedly  lie  about 
their  knowledge  of  turret  lathe  operating  in  the 
hope  that  they  could  get  away  with  the  job.  If 
they  proved  to  be  rank  failures  they  would  be 
fired  immediately  without  the  slightest  effort  to 
see  if  there  was  any  other  job  m  the  place  that 
they  could  do.  During  the  demonstration  of 
their  incapacity,  doubtless  they  would  spoil 
some  material  and  retard  production. 

Suppose  t!u-\'  do  get  by.  1  hey  may  discover 
that  they  are  on  a  piece  rate  at  which  they  cannot 
make  a  decent  wage  no  matter  how  hard  thev  \\ork. 
I  hey  feel  that  it  is  useless  to  kick  about  the  rate, 
for  the  foreman  has  probably  set  it  and  v>ill  dis- 
charge them  as  shirkers  if  they  complain.  1  here- 
fore  they  quit.  Or,  the  rate  may  lu  high  and  their 
fellow  workers  will  quickly  give  the  tip  not  to 


24  Man  to  Man 

spoil  a  good  thing  by  turning  out  too  much.  They 
loaf  on  the  job. 

Take  such  an  individual  case.  What  is  his 
outlook?  He  knows  he  will  not  be  advanced  to 
a  better  rate  because  the  work  he  is  doing  is  worth 
just  so  much  and  no  more.  The  best  that  he  can 
expect  is  to  keep  working  away  at  that  machine 
until  the  end  of  time,  being  paid  precisely  the 
same  amount  for  his  labor  regardless  of  his  effi- 
ciency unless  some  force  outside  the  factory  com- 
pels a  general  raise.  The  reward  for  high  efficiency 
will  be  a  cut  in  the  rate.  When  the  volume  of 
work  lessens  he  expects  to  be  laid  off;  he  knows 
also  that  the  foreman,  convinced  of  the  efficacy 
of  military  discipline,  will,  probably,  from  time 
to  time,  do  a  little  indiscriminate  firing  in  order, 
as  the  foreman  himself  would  express  it — "to 
put  the  fear  of  God  in  their  hearts." 

The  worker's  relations  are  wholly  impersonal; 
he  has  a  number  and  he  is  nothing  more  than  a 
number.  His  first  thought  always  must  be  to 
look  out  for  himself — certainly  no  one  else  will  do 
that  for  him.  He  will  be  fired  for  bad  work  but 
not  rewarded  for  exceptionally  good  work.  He 
has  not  a  single  inducement  to  take  an  interest 
in  what  is  going  on  about  him.  Having  his  own 


Industrial   Democracy  25 

welfare  in  mind,  he  is  ready  to  join  in  any  move- 
ment which  promises  higher  wages  and  easier 
work. 

There  is  the  average  factory  worker!  Probably 
at  some  period  of  his  life  he  has  been  harshly  or 
unfairly  treated  by  a  boss  or  by  some  employment 
agency — for  cheating  immigrants  used  to  be  one 
of  our  favorite  national  pastimes.  It  is  inevitable 
that  he  should  gather  together  quite  a  good  deal 
of  specific  ill-will  against  individuals  and  it  is  not 
unnatural  that  this  sense  of  cumulative  smarting 
injustice  should  be  directed  against  some  specific 
object.  The  most  convenient  target  is  the  em- 
ployer for  whom  he  happens  to  be  working.  And 
because  human  nature  is  always  illogical,  he  bears 
ill-will  toward  his  employer — no  matter  how 
fair  that  particular  employer  may  happen  to  be. 
It  is  a  class  and  not  an  individual  enmity. 

Thus  he  is  open  to  suggestion  from  any  and 
every  demagogue  who  comes  along.  \Vhcn  a 
man  is  discontented  he  greatly  appreciates  having 
ft  demagogue  to  congratulate  him  on  hts  discontent 
and  suggest  a  few  other  things  thar  he  ought  to 
be  angry  about.  It  is  a  deplorable  condition  but 
perfectly  understandable;  it  is  reasonable  in  its 
very  unreasonableness.  Take  this  extract  from 


26  Man  to  Man 

the  extremely  intelligent  report  of  President  Wil- 
son's Mediation  Commission  upon  labor  unrest: 

As  is  generally  true  of  large  industrial  conflicts,  the  roots 
of  labor  difficulty  in  the  packing  industry  lie  deep.  The 
chief  source  of  trouble  comes  from  lack  of  solidarity  and  want 
of  power  on  the  part  of  the  workers  to  secure  redress  of  griev- 
ances because  of  the  systematic  opposition  on  the  part  of  the 
packers  against  the  organization  of  its  workers.  The  strike 
of  1903  destroyed  the  union,  and  for  fourteen  years  the  organi- 
zation of  the  yards  has  been  successfully  resisted.  In  1917 
effective  organization  again  made  itself  felt,  so  that  by  the 
end  of  the  year  a  sizable  minority,  variously  estimated  from 
25  to  50  per  cent.,  was  unionized.  It  is  a  commonplace  of 
trade-union  experience  that  an  organized  compact  minority 
can  control  the  labor  situation  in  an  industry.  The  union 
leaders  felt,  and  rightly  felt,  therefore,  that  their  demands 
had  the  effective  backing  of  a  potential  strike.  More  import- 
ant than  any  of  the  specific  grievances,  however,  was  the 
natural  desire  to  assert  the  power  of  the, union  by  asking  the 
packers  for  union  recognition,  at  least  to  the  extent  of  a  meet- 
ing between  thj  packers  and  the  representatives  of  the  unions. 

This  the  packers  refused  to  do.  They  refused  to  meet  eye 
to  eye  with  the  union  leaders  because  of  distrust  of  those 
leaders.  It  can  not  be  gainsaid  that  the  absence  of  a  union 
organization  for  fourteen  years,  the  increasingly  large  per 
cent,  of  non-English-speaking  labor,  and  the  long  pent-up 
feeling  of  bitterness,  all  tended  to  make  some  of  the  men  in 
whom  the  leadership  for  the  time  being  rested  somewhat 
devoid  of  that  moderation  in  thought  and  speech  which 
comes  from  long  experience  in  trade  negotiations.  On  the 
other  hand,  refusal  of  the  packers  to  deal  with  these  leaders 
tended  to  encourage  and  intensify  those  very  qualities  which 
dissuaded  the  packers  from  industrial  contact  with  them. 

The  two  important  specific  grievances  involved  low  wages 


Iiulustri.il   Democracy  27 

and  lonjj  hours.  In  fact,  two  wage  increase*  had,  during  if/17, 
been  granted  to  workmen,  largely  in  an  endeavor  to  forestall 
union  aitivity.  Nevertheless  the-  i  lairn  w.»%  nude,  and 
vahdly  made.  ih.it  flic  wa^r  scale*,  particularly  f«>r  the  creat 
body  of  unskilled  workers,  were  inadequate  in  vu-w  of  the 
increased  cost  of  IIMIIK-  A  further  fait  that  mfluerued  the 
workers  in  their  w.i:;e  demand  was  the  h.-hef  that  the  com- 
panici  had  hern  maLing  e\n-ss  profit-,  dr-.pifc  Cinvernment 
rejjtilation  of  juurs.  I  nfortunatcly  thr  rrtus.il  of  tin-  pack- 
ers to  meet  flu-  union  leaden  deprived  the  p.u  Li  rs  of  tfie  op- 
portunity ot  explaining  away,  if  possible,  the  Ixlitf  enter- 
tained by  tiic  men  that  the  packers  were  profiteering. 


Analyze  those  paragraphs.  The  union  was 
strong  In-cause  of  the  ill-will  of  the  workers. 
This  ill-vsi!I  h.ul  not  been  ijuieted  by  increasing 
waj;es;  rat  fur  the  increases  were  taken  as  evidence 
that  evm  higher  waives  could  be  paid.  Discon- 
tent generated  the  suspicion  that  the  company 
profits  \\ere  unduly  large  and  th«-  people  asked 
for  a  share  in  them  under  the  guise  of  higher  pay. 
The  workers  called  their  employers  profiteers  and 
in  the  next  breath  asked  to  share  in  the  swag! 
How  easily  these  matters  nii^ht  have  been  settled 
had  the  workers  some  democratic  nut  hod  of  hnd- 
inp  out  what  really  was  goi:i£  on  and  of  urging 
their  pleas  for  what  they  thought  was  justice. 
I  am  not  attempting  to  say  who  was  n^ht;  there  is 
nothing  to  show  that  the  profits  were  unduly 


28  Man  to  Man 

high,  but  the  real  point  is  that  the  packers  and 
their  workers  "had  no  easy,  informal  way  of  get- 
ting together  and  finding  cut  about  each  other. 

Men  strike  because  they  are  without  adequate 
representation;  they  may  ostensibly  go  out  for 
wages  or  hours  but  the  rub  nowadays  is  the  recog- 
nition of  the  union.  They  think  that  they  want 
money,  but  when  they  get  the  money  they  have 
always  another  complaint  and  whether  or  not  it 
happens  to  be  phrased  in  money  is  of  small  matter; 
that  is  merely  a  fault  of  expression.  What  is 
really  behind  it  all  is  the  half-articulated  feeling 
that  they  should  be  treated  not  as  mere  material 
but  as  co-promoters  of  industry;  that  there  should 
be  a  dignity  in  their  position  and  relations. 

Take  again  the  report  of  the  Mediation  Com- 
mission and  look  at  this  summary  of  why  men 
strike: 


American  industry  lacks  a  healthy  basis  of  relationship 
between  management  and  men  .  .  .  there  is  a  widespread 
lack  of  knowledge  on  the  part  of  capital  as  to  labor's  feelings 
and  needs  and  on  the  part  of  labor  as  to  the  problem  s  of  man- 
agement ...  to  uncorrected  specific  evils  in  the  absence 
of  a  healthy  spirit  between  capital  and  labor  .  .  .  too 
often  there  is  a  glaring  inconsistency  between  our  democratic 
purposes  in  this  war  abroad  and  the  autocratic  conduct  of 
some  of  those  conducting  industry  at  home. 


Industri.il   Democracy  29 

Is  not  this  formal  conclusion  only  another  way 
of  saying  that  we  have  failed  to  appreciate  the 
value  of  mutual  understanding?  That  we  have 
failed  to  get  down  to  a  man-to-man  basis? 

But  can  such  an  understanding  he  had  without 
radically  changing  the  whole  organization  of 
industry? 

It  can.  In  the  following  chapters  I  am  present- 
ing some  cases  where  it  has  been  done. 


CHAPTER  III 

BUILDING   MEN   TO    BUILD    PIANOS 

THE  mutterings,  the  vague  threats,  had  come 
to  a  head  at  last.  An  emissary  of  the  union 
had  just  informed  the  president  of  the  Packard 
Piano  Company  of  Fort  Wayne,  Ind.,  that  thence- 
forth the  shop  was  to  be  exclusively  a  union 
shop,  that  other  than  union  members  in  good 
standing  were  not  to  work  in  it — it  was  to 
be  run  as  a  "closed  shop."  He  had  broken  the 
news  with  a  half-courteous,  half-impudent  man- 
ner— a  "this  is  how  you're  going  to  run  your 
business"  air — taking  no  pains  to  conceal  his  satis- 
faction over  the  rapid  unionizing  of  the  men. 
He  felt  able  to  dictate. 

"You  mean  that  I  am  to  discharge  every  man 
who  does  not  belong  to  your  union?"  queried 
the  president. 

"Most  of  them  belong,"  answered  the  agent, 
"and  we  will  give  the  others  a  fair  chance  to 
join.'* 

"And  if  they  don't?" 

30 


Industrial   Democracy  31 

"Thru  I  guess  we'll  have  to  treat  them  as 
scabs,"  remarked  the  agent  carelessly;  and  thru, 
significantly,  "you  know  we  union  men  can't 
work  with  scabs." 

"You  nu-an  ro  say  that  if  these  men  do  not  join 
anil  I  do  not  discharge  them  you  will  call  a  strike? 

1  he  agent  nodded,  "  I  hat's  about  it." 

"I  will  not  discharge  a  man  except  for  poor  work 
or  bad  conduct  here,"  continued  the  president 
firmly.  "I  ndcr  the  circumstances,  I  think  we 
had  bitter  quit  before  you  do.  I  will  shut  down 
this  factory  within  an  hour  and  I  will  not  open  it 
again  until  I  lind  men  who  are  willing  to  work  as 
I  want  them  to  and  not  as  you  want." 

I  he  president  kept  his  word,  lie  closed  flu- 
shop  but  not  in  the  way  that  the  union  agent  had 
asked;  he  closed  it  "for  repairs  and  installing 
machinery." 

The  strike  was  on.  The  union  fought  hard  but 
the  odds  were  against  it  and  also  the  people,  tor 
the  Middle  West  was  not  then  very  favorable  ro 
unions,  \\ithin  a  month  the  factory  opened 
again;  the  union  men  came  straggling  back  for 
their  old  jobs  and  got  them.  The  president- 
had  maintained  his  position  and  the  unjust  labor 
leader  had  been  forced  to  back  down.  According 


32  Man  to  Man 

to  the  technique  of  strikes,  the  company  had  won 
and  the  men  had  lost. 

Such  was  the  face  of  things.  But  a  glance  at 
the  production  chart  for  the  first  month  after 
opening  caused  the  president  to  doubt  if  he  had 
won  as  much  as  he  had  lost.  On  paper  the  factory 
should  have  been  producing  to  the  limit;  the  full 
complement  was  on  the  pay  roll,  every  machine 
was  running.  But  pianos  were  not  coming  through 
at  more  than  half  the  right  volume  and  those 
that  did  come  through  were  by  no  means  up  to 
standard;  the  workmanship  was  careless  and  the 
sales  agents  began  to  complain.  As  the  months 
went  by,  conditions  became  worse.  The  men 
openly  soldiered  on  their  jobs;  they  had  no  in- 
terest, they  disgruntedly  worked  because — and 
they  did  not  care  who  knew  it — they  had  no  other 
place  to  find  wages. 

The  company  lost  not  only  money  through  the 
high  cost  of  the  instruments  but  also  customers 
through  delivering  faulty  goods. 

Everybody — company  and  men — was  sore. 

This  was  not  a  case  of  a  grinding  employer 
trying  to  beat  production  out  of  his  men.  The 
president  was  a  fair  man — one  of  the  fairest  that 
I  have  ever  met;  he  wanted  to  do  what  was  right; 


Industrial  Democracy  33 

he  paid  the  market  wage  for  a  ten-hour  day. 
His  trouble  with  the  union  had  not  been  due  to 
wages,  hours,  or  conditions;  he  was  not  opposed 
to  unions  and  he  would  have  stood  ready  to  con- 
duct a  "closed  shop,"  could  he  have  reconciled 
himself  to  discharging  workmen  for  nor  belonging 
to  the  union.  He  hoped  that  better  methods  might 
bring  a  change  and  he  retained  an  efficiency'  en- 
gineer; for  eighteen  months  that  engineer  labored 
to  speed  production  and  cur  costs  but  the  men 
simply  would  not  cooperate;  they  would  not  do 
more  than  drag  through  their  tasks'. 

I  he  president  put  the  whole  situation  before 
me  frankly:  "I  feel  that  I  am  somehow  to  blame 
here;  I  cannot  get  down  to  the  men;  they  do  not 
trust  me  although  I  am  as  fair  as  I  know  how  to 
be.  I  simply  have  not  sold  myself  to  them.  I 
shall  do  anything  you  tell  me  to  do.  I  put  myself 
in  your  hands." 

I  was  convinced  of  his  sincerity.  I  looked  about 
a  bit  for  the  real  causes  ot  the  strike  whose  wake 
hail  caused  the  trouble.  The  factory  wa-s  an  old 
established  one  and  had  originally  made  reed 
organs  for  the  home.  They  branched  our  into  the 
manufacture  of  pianos  as  the  market  for  organs 
lessened.  In  the  change  the  men  who  had  been 


34  Man  to  Man 

with  the  company  for  years  were  shifted  into  new 
departments  and,  although  places  were  found  for 
all  of  them,  they  were  none  too  happy  at  the  new 
work.  The  efficiency  engineer  put  in  a  schedule  of 
piece  rates.  They  began  on  a  wrong  basis,  had  to 
be  tinkered  constantly,  and  gave  universal  dissat- 
isfaction. The  workmen  came  to  doubt  all  the 
rates  and  felt  vaguely  that  they  were  being  "done." 
Then  appeared  the  "walking  delegate"  to 
unionize  the  town;  he  got  a  hearty  reception 
and  within  a  few  weeks  the  president  was  called 
on  to  recognize  the  union — which  he  promptly  did. 
It  so  happened  that  the  president,  secretary,  and 
treasurer  of  the  local  were  all  in  the  company's 
shops  and  they  began  at  once  to  use  their  new- 
found power.  All  three  of  them  were  in  the 
varnishing  department;  they  asked  and  got  a  rate 
of  30  cents  an  hour  for  varnishing  piano  cases  with 
a  time  limit  of  32  hours  for  16  cases  and  a  bonus  for 
finishing  within  that  limit.  Then  they  asked 
for  a  limit  of  36  hours  and  a  higher  hour  rate. 
The  president  did  not  grant  the  increase;  instead 
he  brought  over  some  of  the  old  non-union  men 
from  the  organ  department  who  were  rated  at 
only  28  cents.  These  men  did  their  first  cases  in 
26  hours  and,  within  a  few  days,  cut  the  time  to 


Industrial   Democracy  35 

2O  hours.  Thrn  the  president,  as  an  answer  to 
the  union  demands,  cut  the  rate  and  time  limit 
according  to  the  records  made  by  the  non-union 
men.  Thereupon  the  union  men  retired  in  a 
hufl  and  the  acute  labor  trouble  stage  set  in. 

The  men  did  not  dislike  the  president;  they 
simply  did  not  know  him  and  defiantly  did  nor 
want  to  know  him.  I  say  the  men  did  not  want 
to  know  him.  It  would  be  more  accurate  to  say 
that  they  refused  to  know  him.  They  were  stub- 
born although  they  did  realize,  in  a  way,  that  it 
was  disagreeable  to  work  under  an  armed  truce-. 
Time  passes  heavily  when  there  is  no  joy  in  tin- 
work  and  every  ir.an,  I  do  not  care  v,!;o  lie  's, 
would  rather  i  ::jov  working  than  n;u!  ir  a  bun!-  :i. 

'1  he  p:'ei  .<'.*.  nt  was  sincere  in  his  iKrir,-  to  have  a 
comple'.-  understanding  with  his  nun-  !:;K-.Y 
t'.ar  otherwise  I  should  rot  have  a:tt.mp:  '.  t  > 
won.  v\i'!i  him.  ^  on  can  tal.e  it  as  absolute  t!..:t 
there  can  be-  no  decent  relation1;  lutv.  ,••„  n  employer 
and  employee  if  either  wants  to  "put  anything 
over"  on  the  other. 

After  spending  a  few  days  talking  with  the  men, 
wandering  about  the  shops  and  getting  all  of  the 
conditions  hxed  in  my  mind,  I  called  a  mass  meet- 
ing in  the  company's  time.  To  ir  came  every 


36  Man  to  Man 

officer  and  employee  of  the  company.  Every  per- 
son on  the  pay  roll  was  there.  Probably  they  would 
not  have  come  had  the  meeting  been  held  at  noon 
time  or  at  any  other  period  when  the  minutes 
were  paid  for  by  the  men  and  not  by  the  company. 
If  the  holding  of  any  kind  of  a  mass  meeting  for 
the  betterment  of  an  organization  is  worth  while, 
then  it  is  worth  paying  for  and  it  is  the  company 
and  not  the  men  who  should  do  the  paying.  I 
planned  for  no  formal  meeting.  We  did  not  hire 
a  hall  nor  did  we  have  a  platform  from  which 
any  one  might  take  an  exercise  in  oratory  and 
talk  down  to  the  men.  We  simply  grouped  in  the 
biggest  shop.  I  cannot  say  that  there  was  any- 
thing particularly  inspiring  about  the  atmosphere. 
The  workers  were  willing  to  hear  what  I  had  to 
say  largely  for  the  reason  that  they  were  being 
paid  for  the  time,  and  as  between  two  evils,  they 
preferred  listening  to  me  to  working.  I  spoke  to 
them  carefully,  simply,  and  as  one  of  them.  I 
did  not  assume  that  the  company  was  right  and 
they  were  wrong;  neither  did  I  tell  them  that  they 
had  nearly  all  the  known  virtues  and  that  we  were 
meeting  largely  to  shake  hands  with  ourselves 
over  that  fact.  A  workman  is  a  human  being; 
he  knows  perfectly  well  that  he  is  not  a  paragon 


Industrial   Democracy  37 

of  virtue  anil  however  much  hi-  may  applaud 
any  one  who  tells  him  that  he  is,  right  down  in  In. 
heart  he  feels  that  the  speaker  who  emits  such 
persiflage  »s  no  better  than  a  fool.  A  normal 
human  being  will  take  great  gobs  of  "soft  soap"; 
he  will  even  follow  leaders  who  do  nothing  but 
oo/c  such  stuff;  but  our  of  all  my  experience  I 
have  yet  to  find  a  workman  who  does  not  consider 
himself  first  as  a  man  and  only  secondly  as  a 
workman,  and  who  does  not  know  that  as  a  man 
lie  has  no  greater  share  of  attributes  divine  than 
is  commonly  dealt  out  to  humanity  in  general. 

I  told  the  crowd  that  things  were  not  going 
well,  that  they  were  not  doing  their  work,  and 
neither  they  nor  the  company  were  getting  as 
much  out  of  life  as  each  had  a  right  to  expect. 

1  he  trouble  is,"  I  said,  "you  are  working  ar 
cross  purposes.  The  company  is  going  one  way 
and  you  are  going  another  and  it  is  not  necessary 
for  me  to  explain  to  any  of  you  that  a  cart  cannot 
get  anywhere  if  it  is  being  pulled  in  different  di- 
rections. It  is  not  anybody's  fault  -it  is  every- 
body's fault.  ^  ou  are  to  blame  and  tin-  company 
is  to  blame,  or,  if  you  would  like  better  to  put  ;. 
in  another  way,  you  are  not  to  blame  and  the  com- 
pany is  not  to  blame. 


38  Man  to  Man 

"I  think  that  I  know  what  the  trouble  is  and 
I  am  here  to  help  you  and  the  company  to  help 
yourselves.  I  shall  not  ask  you  to  do  anything 
except  listen  and  ask  questions.  If  you  think  I 
am  on  the  square  we  will  have  more  meetings 
and  work  this  thing  out.  But  if  you  think  I  am 
trying  to  put  anything  over  on  you,  say  so.  This 
is  your  meeting  and  not  mine.  By  your  vote  you 
can  take  me  or  leave  me. 

"I  think  the  trouble  with  this  company  and 
with  you  is  that  we  have  no  common  business 
policy — a  single  policy  which  will  be  that  of  the 
company  and  of  every  man  in  this  room.  Did 
you  ever  think  how  easily  matters  would  run  if 
both  the  company  and  yourselves  were  working 
along  the  same  lines?  If  you  were  all  out  for  the 
same  thing  and  willing  to  work  together  in  the 
fairest,  squarest  manner?  If  we  have  a  policy 
it  should  be  put  down  in  black  and  white  and 
hung  up  on  the  wall.  You  can  carry  copies  in 
your  pocket,  and  you  can  make  it  the  rule  of  your 
conduct  in  everything. 

"I  am  not  going  to  give  you  a  policy — I  am 
going  to  ask  you  to  adopt  one  for  yourselves.  It 
will  have  four  corner-stones  and  a  cap-stone  but 
I  am  going  to  suggest  only  one  a  week.  We  will 


Industrial    Democracy  39 

take  one  today,  talk  it  over,  ami  then  vote  on  it. 
If  you  vote  "Yes"  wr  will  lay  the  second  corner- 
stone a  week  from  today  and  then  you  can  vote  on 
that.  Hut  if  this  corner-stone  or  those  which 
we  may  talk  about  on  any  later  day,  does  not  suit 
you,  I  expect  you  to  vote  "No"  and  we  will  quit. 
There  is  absolutely  no  use  in  having  a  business 
policy  unless  everybody  agrees  to  ir,  ami  by  every- 
body I  mean  not  only  the  president  of  the  company 
but  also  the  truck  men  and  the  office  boys.  I 
suggest,  as  the  hrst  corner-stone — Justice" 

I  talked  about  Justice;  what  it  means  in  our 
daily  life;  that  we  cannot  expect  Justice  unless 
also  we  give  Justice.  That  it  is  two  sided;  that  it 
causes  a  square  deal  all  around — on  the  part  of 
the  men  as  well  as  on  the  part  of  the  company. 
Then  I  offered  this  resolution  to  be  adopted  as  the 
hrst  corner-stone  of  the  policy: 

NVc,  the  Employers,  Officers,  and  Directors,  rcco£ni/ing 
that  Justice  is  the  greatest  pood  and  Injustice  the  prcatrst 
evil,  do  hereby  lay  and  subscribe  to,  as  the  first  corner-stone 
of  our  policy,  this  greatest  of  all  good. 

JUSTICE 

The  fullest  meaning  of  this  word  shall  be  the  basis  of  all  our 
business  and  personal  dealings — among  ourselves  as  indi- 
vidual s,  between  our  company  and  those  of  whom  we  buy, and 
bef.vccn  our  company  and  those  to  whom  we  sell. 


40  Man  to  Man 

Justice  shall  be  the  first  Corner-stone  upon  which  we  agree 
and  determine  to  construct  broader  character  as  individuals 
and  broader  commerce  as  an  institution. 

We  recognize  that  justice  to  ourselves  necessitates  taking 
advantage  of  every  opportunity  to  do  the  best  that  is  in  us, 
and  each  day  improve  that  growing  ability. 

We  realize  that  merit  must  be  recognized  whether  in  ability 
or  merchandise.  With  this  assurance  we  cheerfully,  hope- 
fully, and  courageously  press  forward  to  certain  and  unquali- 
fied success. 

The  men  were  interested.  Some  of  them  had 
thought  of  justice  only  as  another  name  for  law, 
somehow  mixed  up  with  courts,  bailiffs,  prisons, 
or  judgments.  Others  had  thought  of  it  as  a 
fine  thing  to  have  around — like  a  Bible.  But  I 
believe  it  had  not  occurred  to  any  one  that  it 
was  something  which  might  be  used  on  each  day 
and  every  day  of  the  year.  They  talked  it 
over  among  themselves  and  with  me.  They 
wanted  to  know  if  the  resolution  meant  what  it 
said  or  if  it  was  only  a  lot  of  words.  Finally 
they  adopted  it  unanimously.  We  adjourned 
for  a  week. 

During  the  days  following  I  could  note  a 
change;  it  was  a  different  crowd  of  men  that  came 
to  the  next  meeting.  Where  they  had  been 
doubting  they  were  now  inquiring.  They  were 
opening  their  minds.  At  the  second  meeting  we 


Industrial   Democracy  41 

adopted     the     second     corner-stone  -Cooperation 
—  in  these  words: 

1 1»  accomplish  thr  greatest  possible  rr-.u!f»  as  individuals 
and  as  an  institution  we  htul  Cooperation  a  nrcrs.itv. 

We  recogm/e  that  business  without  l''»>prr4fi'iM  is  like 
sound  without  harmony,  fhcrcforc  we  determine  and  agree 
to  pull  together  and  freely  offer,  and  work  v. uh,  the  spirit 
of  that  principle—  Cooperation. 

So  we  shall  grow  m  character  and  ability  and  develop  in- 
dividual and  Commercial  Supremacy. 

Differences  of  opinion  shall  he  freely  and  fearlessly  ex- 
pressed, but  we  shall  at  all  times  stand  ready  to  C.  <  • ,'  fr.-.'.e  with 
and  heartily  support  the  final  judgment  in  all  matters. 

In  the  successive  weeks  we  adopted  the  remain- 
ing corner-stones  of  Economy  and  Enc'r^y,  thus:-— 

ECONOMY 

As  each  moment  is  a  full  unit  in  each  hour  and  each  hour  a 
full  unit  in  each  day,  so  each  well  spent  unit  of  thought  and 
well-spent  unit  of  action  makes  for  each  victory  and  the  final 
success-. 

When  the  hour,  the  day,  the  year,  or  the  life  is  filled  with 
well-spent  ability,  and  an  institution  is  composed  of  individ- 
uals who  recognize  the  value  of  and  .so  use  their  time,  then 
success  is  controlled  and  governed  and  there  is  no  longer 
vague  uncertainty  or  a  blind  and  unreasoning  hope. 

Life  is  like  a  bag  in  which,  each  moment,  we  p!.uv  a  unit 
of  value  or  of  rubbish,  and  our  present  and  future  happiness 
depends  upon  the  contents  of  that  bag. 

Rccogni/.ing  that  l'.c->r.,  n:y  is  time,  material,  and  energy 
well-spent,  we  determine  to  maki-  the  he»t  u-.c  of  them,  thus 
so  shall  time,  matcn.il,  and  energy  become  our  servants 
while  we  become  the  ma.sti:.s  >•;  ;>i.r  destiny. 


42  Man  to  Man 

ENERGY 

As  Energy  is  the  power  back  of  action,  and  action  is  nec- 
essary to  produce  results,  we  determine  to  Energize  our 
minds  and  hands,  concentrating  all  our  powers  upon  the  most 
important  work  before  us. 

Thus  intensifying  our  mental  and  physical  activity,  we 
shall  "Make  two  grow  where  one  was,"  well  knowing  that  our 
Individual  and  Commercial  Crop  of  Results  will  yield  in  just 
proportion  to  our  productive  and  persistent  activity. 

This  power  of  Energy  directed  exclusively  toward  sound 
and  vigorous  construction  leaves  no  room  for  destruction 
and  reduces  all  forms  of  resistance. 

Having  all  our  corner-stones  in  place,  in  the 
fifth  week  I  summed  up  all  that  had  gone  before. 
I  told  them  that  we  had  the  solidest  foundation 
in  the  world  to  build  on,  one  that  could  not  be 
shaken.  It  only  remained  for  them  to  put  on  a 
roof  or  a  cap-stone  and  then  we  should  have  a 
complete  structure  that  would  last  forever.  As  a 
cap-stone  I  suggested  Service.  I  explained  that 
our  only  end  in  life  was  service;  that  the  only  fun 
that  we  might  find  in  life  was  through  service; 
and  that  if  we  always  bore  in  mind  the  four 
principles  we  had  adopted  and  made  them  con- 
verge in  the  rendering  of  service  we  should  not 
thereafter  have  anything  anywhere  to  fear. 

With  yells  and  cheers,  that  crowd  of  men  who, 
five  weeks  before,  had  greeted  me  with  an  if-you- 


Industrial   Democracy  43 

must-get-it-out-of-your-systcm-shoot-ancl-gct-il 
donowith  look,  halted  the  beginning  of  work 
under  what  they  conceived  to  he  the  new  order 
of  things.  They  were  as  one  man  for  .SVrriVr. 
Here  is  what  we  voted  as  .SVf:/tv:— 

We  believe  that  the  only  sure  ami  sound  construction  of 
succr.ss  as  an  uulivKlu.il  or  an  institution  depends  upon  the 
quality  and  quantity  of  service  rendered. 

\\  c  neither  anticipate  nor  hope  t<>  be  unusually  favored  by 
fortune,  but  are  thoroughly  persuaded  that  fortune  favors  the 
performer  of  worthy  deeds  and  of  unusual  sen  ice,  and  we 
therefore  determine  that  our  days  and  our  years  be  occupied 
with  such  performance. 

Quality  shall  always  be  the  first  element  of  our  service  and 
quantity  shall  e\er  be  the  second  consideration. 

I  hus  shall  we  establish  nor  only  the  reputation  but  the 
character  of  servmp  best  and  serving  most. 

I  hcrefore,  by  serving  admirably,  we  shall  deserve  and  re- 
ceive proportionately. 

The  five  resolutions  formed  our  business  policy; 
it  was  typewritten  am!  hound  and  ever}'  man  in 
the  entire  organization — even,'  officer,  even,'  di- 
rector, every  workman — signed  ir.  We  had  addi- 
tional copies  struck  oft"  so  that  each  man  might 
carry  one  in  his  pocket  as  a  kind  of  a  rule  hook 
for  his  guidance.  We  hung  copies  around  the 
office  and  the  shop.  \\  e  sent  them  to  our  agents. 
In  short,  we  wanted  everv  human  being  with  whom 


44  Man  to  Man 

we  came  in  contact  to  know  what  our  policy  was — 
what  we  intended  to  live  up  to. 

Having  adopted  a  policy  I  explained  to  the  men 
that  from  that  time  forward  we  were  going  to  run 
that  institution  together;  that  we  were  going  to 
meet  once  a  week,  tell  about  anything  we  found 
wrong,  and  then  devise  a  remedy.  That  from 
henceforth  we  were  all  going  to  work  together; 
that  they  were  not  working  for  the  president  nor 
for  the  company  but  that  every  man  was  working 
with  the  company  and  the  company  with  every 
man;  that  there  was  not  a  single  question  of  any 
kind  wrhich  could  not  be  brought  up  in  open  meet- 
ing and  threshed  out.  That  nobody  was  to  go 
around  nursing  a  grievance — that  instead  he  was 
to  bring  it  right  out  in  open  meeting;  that  nobody 
was  to  be  fired  for  anything  that  he  said  or  did 
in  meeting  unless  the  meeting  decided  he  should 
be  fired;  that  the  organization  was  to  be  a  democ- 
racy run  by  all  for  all. 

I  told  them  that  they  were  going  to  save  money 
under  the  new  plan — that  they  were  going  to  get 
more  work  done;  that  it  would  not  be  a  square 
deal  for  the  company  alone  to  take  the  money 
that  they  had  saved  but  instead  that  we  would 
split  up  the  savings  50-50,  that  is,  as  the  books 


Industrial   Democracy  45 

of  the  company  showed  savings  in  the  cost  of 
operation,  the  amount  saved  would  he  divided 
into  two  parts— one  would  go  to  the  company 
and  the  other  would  he  distributed  every  two 
weeks  to  the  men  as  a  dividend  on  wages. 

They  cheered  and  went  to  woik  with  a  will. 
The  very  day  of  that  meeting,  six  men  called  on 
the  president.  They  said  that  their  gang  could 
spare  a  hand.  That  they  had  tried  it  our  among 
themselves  and  the  only  thing  that  bothered  them 
was  that  none  of  them  wanted  to  lose  a  job;  if 
any  place  in  the  factory  could  be  found  for  the 
sixth  man  they  knew  they  could  make  a  saving. 
A  place  was  found  and  they  made  the  saving. 

At  the  end  of  the  first  month  the  force  had  cut 
costs  of  production  5 \r/0  which  meant  a  dividend 
equally  to  them  and  to  the  company.  For 
several  months  they  kept  on  with  an  average 
dividend  of  never  less  than  5^  and  sometimes 
higher.  They  put  their  whole  selves  into  the 
work. 

They  had  been  working  ten  hours  a  day,  six 
days  a  week.  A  resolution  was  offered  that  the 
working  day  should  be  nine  hours.  Immediately 
the  objection  was  raised  that  it  would  not  be 
fair  to  the  company  to  ask  for  ten-hours'  pay 


46  Man  to  Man 

for  nine-hours'  work,  that  to  make  such  a  request 
would  be  violating  the  corner-stone  of  Justice. 
A  workman  spoke  up: 

"If  we  can  do  in  nine  hours  what  we  used  to  do 
in  ten  hours,  then  we  can  work  nine  hours  and  yet 
live  up  to  our  principles.  The  only  way  to  find 
that  out  is  to  try  it.  I  propose  that  we  try  the 
nine-hour  day  for  a  month." 

The  meeting  passed  that  resolution.  The  fac- 
tory turned  out  more  work  in  the  nine-hour  day 
than  in  the  ten-hour  day;  the  piece  workers  who 
composed  83%  of  the  force  each  individually 
made  more  money,  and  of  course  there  was  a 
bigger  dividend  than  ever  to  cut  up  because  of 
the  "overhead"  saving  on  the  shorter  day. 

After  running  along  for  some  months  on  the 
nine-hour  day,  several  of  the  more  progressive 
spirits  proposed  the  eight-hour  day  with  a  half 
day  off  on  Saturday.  But  this  was  too  much  for 
the  conservative  piece-work  element.  Charlie, 
one  of  the  best  workers,  announced  definitely  that 
he  could  not  do  in  eight  hours  what  he  was  now 
doing  in  nine  and  what  he  had  been  doing  in  ten. 
He  was  at  his  absolute  limit  and  that  if  the  hours 
were  cut  he  was  going  to  lose  money. 

The  company  advocated  the  reduction  to  nine 


Iiulustri.il   Democracy  47 

hours  anil  also  to  eight  hours.  When  Charlie  had 
finished  his  speech  the  president  asked  him: 

"Do  you  nerd  another  press?  Could  you  get 
more  done  if  you  had  another  press?" 

"No,  I  do  not  need  another  press." 

"  Ho  you  need  more  nxjm  ?     Are  you  cramped  ? " 

"No,   I   am  not   cramped." 

"Charlie,"  continued  the  president,  "I  know 
what  is  the  matter  with  you.  When  you  leave 
here  you  go  home  to  a  shop  in  your  own  house 
and  you  work  there  as  hard  as  you  can  till  II  or 
iz  o'clock  at  night.  When  you  come  here  in  the 
morning  you  are  a  tired  man.  You  do  not  know 
that  you  are  tired,  you  think  that  you  are  fresh, 
hut  as  a  matter  of  fact  you  are  tired.  I  think 
that  you  can  do  more  than  you  an-  doing  if  you 
cut  out  your  outside  work;  and  that  you  will  make 
more  money  right  here  than  you  do  now  with  your 
work  outside  and  your  work  here." 

The  meeting  resolved  to  give  the  short  day  a 
two  months'  test.  If,  at  the  end  of  that  time,  the 
men's  wages  had  fallen,  or  production  costs  had 
risen,  breaking  into  the  dividends,  then  they  would 
go  hack  to  nine  hours. 

At  the  end  of  the  first  thirty  days  even,'  piece 
worker  in  the  plant  received  a  bigger  wage  than 


48  Man  to  Man 

he  had  ever  previously  earned  and,  in  addition, 
there  was  an  8%  saving  on  production  and  another 
wage  dividend — the  best  which  had  yet  been  de- 
clared. 

How  did  they  do  it?  Did  they  slight  the 
quality?  No,  quality  was  the  first  consideration. 
I  heard  a  new  man  challenge  a  fellow-worker: 

"Bet  you  a  cigar  I  can  beat  you  done." 

"Not  on  your  life,"  came  back  the  reply,  "a 
fellow's  got  to  be  careful  on  this  job.  You  can't 
slight  things  around  here;  just  get  that  idea  out 
of  your  system  and  you'll  last." 

The  quality  was  so  much  better  than  before 
that  the  company  could  not  keep  up  with  its 
sales. 

The  men  made  the  savings  by  being  interested 
in  their  work,  by  putting  themselves  into  it,  and 
by  diverting  all  the  thought  and  energy  which 
they  had  formerly  used  in  the  development  of 
the  fine  art  of  loafing  to  bettering  the  processes 
of  manufacture. 

One  of  the  most  important  parts  of  a  piano  is 
the  sounding  board.  The  wood  must  be  exactly 
seasoned  and  it  had  always  been  thought  that 
it  had  to  be  made  by  hand.  Seven  boards  was 
considered  good  ten  hours'  work.  The  men  de- 


Industrial   Democracy  49 

vised  a  machine  to  do  the  work  better  and  quicker 
than  by  hand.  I  he  president  had  it  built  accord- 
ing to  their  designs.  It  was  shaped  something  like 
a  banjo— they  called  it  "the  banjo."  With  it 
one  man  easily  turned  out  sixteen  boards  in  an 
tight-hour  day — boards  which  were  more  uniform 
and  in  every  way  better  than  the  hand-made  ones! 

The  spirit  of  "getting  by"  dropped  our  of  that 
plant.  At  one  of  the  meetings  a  workman  sug- 
gested that  the  company  employ  an  efficiency 
engineer  to  teach  better  methods.  I  his  was 
startling  enough  in  itself,  because  the  very  name 
"efficiency  engineer"  is  anathema  to  the  average 
union  workman— it  brings  up  to  him  only  inhuman 
and  unhuman  "speeding  up."  Hut  the  men  took 
the  suggestion  seriously.  They  did  not  jeer. 
They  had  open  minds.  They  discussed  the  pos- 
sibilities until  one  exasperated  spirit  burse  out: 

"Hell,  we  have  268  efficiency  engineers  right 
here  now!" 

That  ended  the  idea  of  luring  an  outsider.  The 
meeting  voted  to  post  signs— "\\e  have  268 
efficiency  engineers  in  this  plant" — the  conserva- 
tives ruled  out  the  emphatic  introduction  of  the 
coiner  of  the  slogan  ;>s  tending  toward  ribaldry. 
There  were  268  employees  and  there  were  268 


50  Man  to  Man 

efficiency  engineers !  They  made  themselves  such. 
Look  at  this  report.  It  came,  not  from  high-priced 
specialists,  but  from  the  men  in  the  power  plant 
working  as  self-appointed  industrial  engineers. 
Would  it  be  possible  anywhere  in  the  world  to 
parallel  it? 

I  know  you  are  interested  about  the  cost  of  operating  our 
power  department  and  the  savings  that  have  been  obtained 
in  the  last  couple  of  years.  In  the  year  1912  there  was  a 
great  leak  in  the  power  department  for  the  cost  of  coal  in 
said  year  was  $8,967.12  so  our  department  started  out  to 
repair  this  leak,  so  we  of  our  department  all  took  upon  our 
shoulders  the  responsibility  of  efficiency  engineers,  and  by  all 
pulling  together  we  obtained  331  per  cent,  saving  in  1913  or 
$2,735.15  as  we  had  reduced  the  cost  from  $8,967.12  to 
$6,231.97.  We  also  worked  to  better  water  conditions  for 
the  cost  of  city  water 

in  1912  was $309.91 

we  reduced  the  cost  in  1913  to 31.82 


or  a  saving  of  90  per  cent,  or $287.09 

By  reducing  the  amount  of  coal  used  we  saved  two  men's 
labor,  which  men  we  placed  in  other  departments.  The  way 
we  saved  those  two  men's  wages  was  we  cut  do\vn  from  two 
firemen  to  one  and  that  one  fireman  had  it  easier  than  either 
of  the  two  firemen  had  it  for  we  cut  down  from  4  boilers  to  2 
boilers  and  by  re-arranging  the  pipes  throughout  the  factory 
and  around  the  boilers  the  one  fireman  had  a  nice  position. 
The  other  man  we  done  away  with  was  a  man  hauling  in  coal 
and  unloading  it.  How  we  done  away  with  this  man  was  by 
making  a  test  on  our  boilers  with  a  couple  of  different  grades 
of  coal  and  we  found  a  coal  that  cost  just  as  much  but  had 


Industrial   Democracy  51 

more  H.  and  V.  in  it  ami  beside*  they  dehvr  red  our  coal  as  we 
needed  it  and  that  saved  the  job  of  a  nun  hauling  in  the 
coal. 

I  hrrr  Wat  another  saving  obtained  through  not  u»ir.g  *o 
much  coal,  for  in  the  year  of  191:  we  had  to  pay  a  man  £4  oo 
a  week  for  hauling  away  ashes  whuh  amounted  to  f>icA  co  a 
yrar.  Now  we  can  give  all  the  ashrs  away  that  %%r  nuke  and 
by  letting  the  coal  we  found  out  that  thr  nld  tual  that  we 
used  to  use  went  as  high  as  8  per  cent,  ashes.  1  he  o>al  we 
now  use  runs  between  -J-4  per  rent,  ashrs. 

The  cost  of  coal  per  piano  during  the  year  of  191:  was 
$4.98  per  piano  anil  in  the  year  of  !'>n,  £4  :''>.  \Ye  arc  not 
stopping  at  thrsc  figures  for  we  h;;urc  for  the  year  of  1^14  to 
obtain  a  ^o  per  cent,  saving  in  coal  over  the  year  l(>i-  and 
also  to  reduce  the  cost  of  coal  per  piano  from  £4  ';S  to  ,<i.io 
per  pi.mo.  And  to  h.i\c  no  city  water  bills  at  .ill  .is  we  are 
using  our  own  well  for  watering  purposes.  N>  1:1  unc  year's 
time  we  patched  the  leak  in  the  power  department  to  a  preat 
extent,  but  this  year  we  are  going  to  put  a  gcxul  patch  on  the 
leak.  1  he  savings  obtained  in  1913  were  as  follows: 


Water           

'--•;  09 

Saved  on  ashes              
One  fireman      .                   
One  vaid  man        

::^  co 

.        .        .              J»CO    00 

<-:o  co 

Oil  on  engine    

"  "    CO 

Total 

,M.'  ~<>   14 

There  u>  no  use  in  stating  what  changes  took  place,  to  make 
these  savings,  but  it  shows  ho'.v  a  few  nun  working  as  "p.e  can 
get  better  results.  And  the  boys  are  working  their  heads  to 
make  a  50  per  cent,  saving  in  fuel  in  this  department  this  year, 
and  nothing  less  will  do. 

Below  I  will  state  the  amount  of  piping  and  machinery  in 


52  Man  to  Man 

the  factory  and  then  will  write  two  tests  that  we  made,  one 
in  August,  1912,  and  the  last  on  April  27,  1914. 

There  is         4>6o5  feet  of  different  size  steam  pipes  or 
62,608.07  square  inches  cross  section  area 
26,832  feet  pipe  used  in  heating  factory  of 
which  25,338  linear  ft.  of  I  in.  pipe  used  for  coils  the 

remainder         i?494  feet  is  main  lines  leading  to  the  coils 
There  are   1,310,496  cubic  feet  of  space  in  factory  heated  by 
31,437  linear  feet  of  steam  and  heating  pipes 

4  boilers  area  openings 
106,643  sq.  inches,  area  of  steam  lines  taken  off  of 

boilers 

48,899,338     There  is  six  miles  of  steam  and  heat- 
ing pipes  in  the  factory. 
Sizes  of  Lines  taken  of  boilers: 

i~5in.  line  for  a  150  H.  P.  Base  Noncondensing  engine 
1-3!  in.  line  fire  pump 
1-3  in.  line  for  the  heating  system 
2-2  in.  glue  lines 

2-l|  in.  lines  for  two  boiler  feed  pumps 
1 1  in.  line  for  4  dry  kilns 

4  boilers  54  per  cent,  rated  H.P» 
385  H.  P.  Builders  Rating 

7  hour  test 

Tests  made  August  18,  1912 
8200  Ibs.  of  coal  fired 
1165    "   ashes 

7035    "    combustible  matter 
1171    "    coal  fired  per  hour 
1005     "   less  ashes 
43625     "   water  used 
6232  Ibs.  water  per  hour 
698  cu.  ft.  of  water 
167  Ibs.  of  ashes  per  hour 
I4-9/-82%  per  cent,  ashes 


Industrial    Democracy  53 

Economic  results  on  thi*  tc'.t  arc  I  lt>.  of  t.<»a!  t»  53  lb«.  of 
water  per  hour 

Test  made  April  J7,  I  >I4 

duration  ol  teif  7  hours 

franc  C'reelt  coal  used 

Kconornic  results  I  Ib.  of 

C'oal  to  1 1 J  Ibs.  of  water 

(.'oal  burned  Jo '7  Ibs. 

Total  evaporation  40,^00 

Water  per  Ib.  of  coal  11.5 

Ashes  11 ; ; 

I'er  cent,  ashes  from  coal  4-$  per  cent. 

Rated  II.  P.  bo.lers  :H:5 

Rated  H.I',  generated  during  rest  60  per  cent. 

Boiler  room  temperature  7H  decrees 

Steam  temp,  in  boilers  331  degrees 

Water  temp,  in  boilers  -IO  degrees 

Coal  burned  per  11.  1'.  :  ,\  Ibs. 

H.I',  developed  171 

Today  we  are  operating  on  two  boilers  easily  and  two 
years  ago  we  had  a  hard  job  to  run  \vith  four  boilers  with  the 
same  amount  of  piping  in  the  factory  but  the.se  results  were 
obtained  through  using  our  heads  as  well  as  our  hands.  All 
the  boys  have  it  easier  today  than  they  e\er  had  it  and  get- 
ting better  wages  and  less  hours. 

1  rorn     your    friend 

1'.  S.     One  of  the  Happy  Family. 

This  letter  would  do  credit  U-xcept  for  the  Eng- 
lish) to  any  graduated  mechanical  engineer.  Can 
you  think  of  ordinary  mechanics  becoming  so 
scientific?  These  men  in  the  boiler  room  had 
been  ordinary  mechanics;  to  make  good  the 
"efficiency  engineer"  title  they  had  studied  the 


54  Man  to  Man 

best  practices  in  boiler  economy.  They  studied 
every  minute  in  order  to  make  their  jobs  better. 

The  average  employer  loses  a  deal  of  money 
through  the  unstable  qualities  of  what  is  called 
"unskilled  labor."  It  comes  and  goes  like  the 
four  winds  of  Heaven.  This  company  had  its 
share  of  such  trouble.  The  men  themselves 
changed  all  that.  They  abolished  "unskilled" 
labor.  When  you  stop  to  consider  it,  all  work  is 
"skilled."  Every  job  can  be  done  well  or  ill. 
Skill  can  be  used  in  anything.  The  unskilled 
laborers  of  the  factory  caught  the  ideas  in  the  air 
and  became  skilled  workmen.  Truckers  found 
that  there  was  more  than  one  way  to  load  and 
haul  a  truck.  Shovellers  discovered  that  a  shovel 
was  something  to  conjure  with.  The  man  who 
did  not  have  brains  enough  to  make  a  skilled 
task  of  his  job  received  instruction  from  those 
who  did  use  their  heads  as  more  than  supports 
for  hats.  The  man  who  came  into  that  shop 
and  acted  as  if  he  were  working  for  and  not  with 
the  boss  soon  got  his  awakening.  The  men  held 
a  slacker  as  no  better  than  a  thief  for  he  was 
stealing  from  them  by  helping  to  cut  down 
dividends. 

The    original    trouble   in   this   plant,    the    big 


Inclustri.il   Democracy  55 

quarrel,  had  been  brought  about,  as  ir.ual, 
by  a  reduction  of  piece  rates.  A  worker  never 
knows  how  to  act  on  n  piece  rate.  If  he  dors 
exceptionally  well  and  makes  a  nigh  wage,  be  is 
afraid  that  his  rate  will  be  cut;  if  he  falls  below  a 
certain  production,  he  fears  tliar  he  will  he  fired. 
Therefore,  since  two  fluids  of  all  piece  rates  arc 
Set  without  exact  knowledge,  the  average  worker 
makes  a  game  our  of  beating  the  rates.  Some- 
times he  wins  and  sometimes  he  loses.  Neither 
be  nor  the  management  is  ever  satisfied.  Hut 
here  it  was  to  the  interest  of  the  workers  them- 
selves to  have  a  fair  rate.  They  knew  that  a 
fair  rate  would  not  be  changed  because  they  them- 
selves were  the  only  people  who  could  change  it. 
The  corner-stone  of  Justice  insured  fair  dealing. 
Therefore  they  studied  rates.  One  group  had 
been  producing  units  at  42  cents  each.  They 
devised  certain  ingenious  jigs  and  also  they  cut 
out  a  deal  of  lost  motion.  After  having  given 
their  improvements  a  fair  trial  they  suggested 
that  their  rate  be  cut  to  II  cents.  At  II  cents 
each  of  these  men  is  making  more  money 
than  he  did  at  42  cents  and  with  less  physical 
labor  I 

These    remarkable    savings — and    I    have   only 


"56  Man  to  Man 

spoken  of  a  few  of  them — were  as  nothing  com- 
pared with  the  heightened  morale  of  the  force. 
The  men  were  heart  and  soul  for  the  company. 
It  was  their  factory  and  their  company,  and  they 
had  a  hand  in  governing  it.  There  was  no  infor- 
mation that  the  weekly  mass  meetings  could  not 
have  for  the  asking.  But  they  were  so  absorbed  in 
making  a  better  company  for  themselves  and 
getting  their  own  dividends  that  they  did  not 
bother  about  any  matter  in  which  they  could  not 
assist.  Only  once  did  they  go  into  any  affair  that 
did  not  involve  strictly  a  production  problem  and 
that  was  in  the  year  1914.  Everyone  recalls 
the  way  that  business  was  palsied  by  the  outbreak 
of  the  Great  War.  The  sale  for  pianos  stopped. 
The  warehouse  began  to  fill  up,  the  outlook  ahead 
was  dismal.  The  president  did  not  want  to  shut 
down  or  run  on  part  time  because  he  did  not  want 
to  inflict  a  hardship  upon  the  organization;  at 
the  same  time  the  company  could  not  continue 
to  manufacture  at  full  speed  without  making  sales. 
It  was  a  delicate  question.  It  bothered  the  presi- 
dent; he  planned  to  present  the  whole  case  to 
the  men.  But  he  did  not  have  to;  the  general 
assembly  took  it  out  of  his  hands.  In  September, 
1914,  a  cabinet  maker  read  this  letter  in  meeting:— 


Industrial    Democracy  57 

To  TII r  BOY*  IN  nir  F.MTORV:- 

I  he  present  MI .1  m  >n  and  condition  of  the  country  do*--,  not 
look  very  bright,  and  the  general  feeling  11,  the  worst  u  yt  t  to 
come;  but  let  us  hope  jj.it. 

I  take  it  for  granted  that  we  arc  all  interested  in  the  welfare 
of  this  factory,  and  arc  willing  t«»  male  a  little  sacrifice  for 
its  interest  and  to  put  Mr.  Bond  at  e.i-.r  t»  know  that  we 
KDOV.  what  he  does  is  for  the  be.sf.  It  is  n«>t  a  pleasant  matter 
to  tell  us  that  we  will  shut  tins  part,  or  that  p.irr.  or  the  whole 
factory  down  for  a  few  days,  so  when  these  conditions  come 
up  let  us  greet  therein  a  cheerful  way.  Mr.  Bond  has  proven 
a  worthy  master  and  if  we  trir.t  lu:n  at  t'u-  helm  he  will  steer 
us  through  these  troubled  conditions.  (I  hat's  Justice) 

As  a  suggestion,  I  think  if  we  take  a  day  or  so  off  now  and 
then  would  help  a  great  deal.  Take  a  day  <>r  two  e  .rra  <>n 
Labor  Day  instead  •>(  waiting  and  getting  it  all  t;i  one  lump, 
what  is  hahle  to  follow  if  we  don't.  What  do  you  suggest? 
Now  is  a  chance  to  cooperate.  (I  hat's  cooperation.) 

'I  he  president  was  astonished.  He  was  as- 
tounded at  the  animated  discussion  that  followed. 
He  realized  that  he  was  nearly  an  outsider  at  that 
meeting.  Instead  ot  discussing  how  long  tiie 
company  could  continue  to  pay  full  rates,  the 
meeting  took  the  attitude  of  inquiring  how  little 
the  workers  themselves  could  get  on  with  until 
better  times  came  around! 

First,  all  the  foremen  volunteered  to  reduce 
their  own  wages  25^,  for  the  time  being.  Then 
•the" meeting,  after  debate,  decided  that  it  would 
be  more  economical  to  work  part  of  the  week  than 


58  Man  to  Man 

to  reduce  the  force  and  they  proposed  that  the 
factory  run  only  during  three  days  of  eight  hours 
each.  The  president  had  to  argue  against  such 
drastic  economy.  He  assured  them  that  they 
could  get  along  on  a  four-day  week.  The  work- 
men were  not  inclined  to  believe  him,  but,  after 
he  produced  facts  and  figures,  they  gave  in  to  the 
extra  day — to  a  four-day  week. 

The  factory  went  on  under  the  limited  schedule 
until  times  began  to  pick  up  in  1916.  Out  of  the 
former  force  168  men  then  remained.  One 
hundred  had  been  unable  to  meet  expenses  on 
the  reduced  wage  and  moved  away  from  the  town 
to  take  other  jobs.  They  drifted  off  gradually 
and  without  disturbing  the  organization.  As  busi- 
ness began  to  liven,  the  president  brought  before 
the  meeting  the  question  of  hiring  additional 
men.  He  was  opposed.  The  workers  declared 
that  for  the  present  they  could  attend  to  every- 
thing and  it  would  be  time  enough  to  talk  of  hir- 
ing new  hands  when  they  had  more  than  they 
could  do.  Business  increased;  it  is  still  increas- 
ing but  more  men  were  not  hired.  At  the  time 
of  writing  this  account,  the  factory  is  doing  a 
larger  business  than  at  any  time  in  its  history 
and  the  work  is  being  done  by  168  men. 


Irulustri.il   Democracy  59 

That  is,  these  men  have,  in  their  role  of  efTi- 
ciencv  engineers,  so  increased  their  individual  and 
colU'Ctivc  efficiencies  that  they  are  doing  not  only 
thai  own  woik  hut  more  than  the  additional  work 
that  was  formerly  done  by  an  extra  hundred  men. 
i  hey  are  not  speeding  up,  they  ate  not  sighting 
quality.  Not  one  of  them  is  working  hardir  than 
he  did  before,  hut  hy  employing  their  hrams  to 
the  very  fullest  extent,  by  making  themselves  a 
part  of  the  company  and  the  product  they  have 
gone  to  lengths  that  a  few  years  ago  would  have 
been  considered  as  wholly  beyond  possibility. 
The  men  are  making  money;  the  company  is 
making  money;  the  wages  and  the  dividends  as 
earned  by  the  workers  are  larger  than  those  earned 
by  similar  workers  in  any  part  of  the  country. 

They  have  made  an  institution.  It  is  rare 
indeed  for  a  man  to  leave  for  any  reason  other 
than  death  or  disability.  What  is  commonly 
known  as  labor  turnover  docs  not  exist  and  this, 
mark  you,  during  a  period  when  an  alleged 
shortage  of  workers  and  the  irresponsibility  of 
"cost  plus"  contracts  made  by  the  Government 
has  caused  employers  to  bid  recklessly  for  any 
man  who  could  handle  tools. 

The  workers  have  their  own  family  and  they 


60  Man  to  Man 

insist  that  every  member  of  that  family  live  up  to 
the  business  policy  of  the  company.  If  any  one 
lags  he  is  promptly  informed  of  the  fact  and  his 
own  fellows  suggest  to  him  that  he  wake  up  or  get 
out.  If  any  man  has  a  grudge  against  the  manage- 
ment and  prefers  to  mutter  about  rather  than 
bring  it  up  in  meeting  it  is  his  fellow-workers  who 
insist  upon  a  showdown. 

.The  meetings  are  now  held  monthly  because 
•not  enough  happened  to  require  the  continuance 
of  weekly  gatherings.  They  discuss  all  sorts  of 
things;  when  they  have  nothing  else  to  do  they 
swap  stories  or  just  "hot  air."  Once  they  took 
it  on  themselves  to  investigate  the  president. 
He  had  not  taken  a  vacation  within  their  memory 
and  they  decided  that  he  needed  one.  They 
passed  a  resolution  granting  the  president  three 
weeks'  vacation  and  intimated  that  they  expected 
the  president  to  regard  their  wish  in  this  respect 
as  law.  He  declared  that  the  company  could  not 
function  without  him.  They  came  back  with  the 
assertion  that  they  would  do  better  without  him. 
He  took  the  three  weeks'  vacation.  When  he 
came  back  he  found  that  all  previous  production 
and  sales  records  had  been  beaten! 

This  is  in  many  respects  an  almost  unbelievable 


Industrial   Democracy  61 

Story.  It  is  wonderful  to  any  one  who  has  brcn 
accustomed  to  regarding  the  workman  as  a  soul- 
less being,  but  it  is  not  wonderful  when  one  con- 
siders what  is  really  at  the  base  of  good  work. 
Let  Mr.  Bond,  the  president  of  the  company,  give 
his  own  explanation.  He  says: 

"\Ve  used  to  build  pianos.  Then  we  stopped 
building  pianos  and  began  to  build  men — they 
have  looked  after  the  building  of  the  pianos.  We 
have  adopted  as  a  slogan  for  the  Packard  Com- 
pany 'If  there  is  no  harmony  in  the  factory  there 
will  be  none  in  the  piano." 

And  so  strongly  does  the  president  believe  in  his 
statement  that  it  is  the  men,  nor  the  company,  who 
are  responsible  for  the  success  that  he  hopes  to 
devise  ways  and  means  for  the  men  themselves 
to  become  so  financially  interested  that  they 
can  guide  and  control  the  company.  I  cannot 
better  summarize  the  results  of  the  work  here 
than  the  men  themselves  have  done.  They  for- 
mally stated  that  a  democratic  administration, 
guided  by  fair  business  policy,  has  accomplished 
these  ten  things  for  them: 

I.   Reduced  working  hours. 

;.    Increased  the  output. 

3.   Produced  better  instruments. 


62  Man  to  Man 

4.   Increased  workmen's  income. 
$.  Put  the  whole  man  to  work. 

6.  Done  away  with  misunderstanding. 

7.  Given  each  man  a  share  of  the  responsibility. 

8.  Made  real  inventors  of  many  workmen. 

9.  Instilled  a  spirit  of  genuine  comradeship  into  the  entire 
'Organization. 

10.  Established  a  new  kind  of  democracy. 

But  what  of  the  union  trouble,  what  of  the 
closed  shop?  What  happened  to  the  original 
grievances  ? 

They  got  lost  in  the  shuffle. 

There  are  no  differences  between  the  men  and 
the  company.  The  men  have  made  their  own 
wages  higher  than  they  could  possibly  ask  through 
the  union;  they  do  not  need  outside  rules  because 
they  make  their  own  rules.  The  men  and  the 
company  being  one,  no  room  has  yet  been  found 
for  an  outsider  to  wedge  into. 

"If  there  is  no  harmony  in  the  factory  there  -will 
be  none  in  the  piano" 


CHAPTER  IV 

OUT  OK  A  CONFUSION  OF  TONGUES 

HOW  did  the  superintendent  of  construction 
feel,  what  did  IK-  say,  and  what  did  he  do 
when  the  curse  of  languages  descended  upon  the 
Tower  of  Babel  job  ?  Did  lie  make  an  effort  to  sort 
out  and  reorganize?  Or  did  he  just  quit  on  the 
spot. 

Over  at  William  Demuth  &  Co.,  at  Brooklyn 
Manor,  Long  Island,  we  had  nearly  ever)'  feature 
of  the  Biblical  story  except  the  tower.  We  had 
nine  hundred  men  and  women;  about  half  were 
Italians,  a  quarter  were  Poles,  and  the  remaining 
quarter  covered  nearly  all  other  nationalities,  with 
a  very  slight  sprinkling  of  Americans.  Many  of 
the  force  could  speak  no  English  and  those  who 
claimed  to  speak  English  had  very  sketchy  vocabu- 
laries which,  under  pressure,  spluttered  into  their 
native  tongues. 

The  factor)'  made  smokers'  pipes  and  had  been 
founded  sixty  years  before  in  a  small  way  by  \\il- 
ham  Demuth  when  all  pipes  were  being  imported. 

63 


64  Man  to  Man 

It  had  grown  steadily  until  it  produced  a  majority 
of  the  smoking  pipes  sold  in  the  United  States; 
it  had  spread  from  a  little  back  room  in  lower 
Manhattan  to  a  splendid  modern  building  in  a 
Brooklyn  suburb.  In  the  beginning  it  employed 
foreign  pipe  makers;  there  are  only  a  few  pipe 
factories  in  this  country  and  few  native  pipe 
makers,  so  it  was  very  seldom  that  trained  workers 
could  be  hired.  The  operators  must  be  trained. 
The  work  of  making  a  briar  pipe  is  not  arduous 
but  it  is  tedious.  Here  roughly  is  the  process. 
The  briar  wood  comes  in  various  rough  shapes  and 
sizes  and  often  has  many  natural  imperfections. 
The  pieces  are  sorted  to  size  and  shape  and  then 
roughly  cut  into  a  pipe  form  which  is  called  a 
"stummel."  The  stummel  is  then  bored  and 
goes  on  to  be  formed  and  polished.  The  forming 
is  done  by  hand  against  whirling  disks  covered 
with  sandpaper.  In  this  process  various  knot 
or  insect  holes  are  uncovered  and  these  must  be 
patched  with  a  special  kind  of  putty  which  will 
take  a  stain  and  blend  into  the  coloring  of  the 
wood.  A  high-grade  pipe  has  no  patches  and 
a  cheap  briar  many  of  them.  It  is  the  perfection 
of  the  wood  as  well  as  the  workmanship  that 
largely  determines  the  quality.  The  finished  bowl 


Irulustri.il   Democracy  65 

goes  on  to  he  mounted  with  a  base  or  precious 
metal  and  finally  to  have  an  amber,  hard  ni!)her, 
hone,  bakelite,  or  other  hir  inserted.  'Hie  com- 
pany makes  pipes  ftoin  woods  other  than  briar 
and  also  from  meerschaum,  hut  all  materials  go 
through  substantially  the  same  process  except  that 
meerschaum  and  calabash  require  most  delicate 
handling.  Most  of  the  work  has  to  be  done  by 
hand  and  even  a  slight  mistake  will  either  ruin 
the  stummel  entirely  or  at  least  take  dollars  of! 
the  selling  price.  Americans  do  nor  shine  ar 
careful  hand  labor;  the  industry  is  an  imported  one 
anyway  and  ir  has  always  drawn  its  labor  largely 
from  the  immigrants  who  used  to  flock  into  New 
York. 

Until  the  Great  War  shut  off  immigration, 
labor  conditions  were  not  serious.  Men  or  women 
could  always  be  had  and  although  they  came  and 
went,  the  wages  were  high  enough  and  other  jobs 
sufficiently  chrhcult  in  the  getting,  to  hold  a  work- 
able force.  But  war  conditions  brought  a  change. 
These  operators  weir  highly  skilled  in  one  task; 
they  could  in  normal  turns  work  outride  only  as 
laborers  and  main'  ot  them  wi  re  too  slight  phys- 
ically for  the  outdoors;  bur  when  the  demand  for 
war  workers  became  threat,  and  anv  one  could 


66  Man  to  Man 

get  a  job  at  high  wages,  they  drifted  away  to  the 
munitions  plants. 

We  fondly  imagine  that  our  immigrants  come 
to  us  to  be  under  the  flag  of  Liberty.  Some  of 
them  do.  But  the  majority  come  for  the  dollar 
and  with  a  fixed  intention  of  going  back  again  when 
they  have  enough  dollars.  They  work  solely  for 
the  high  dollar.  They  care  for  their  employer  in 
so  far  as  it  affects  the  number  of  dollars  earned. 
We  have  taught  them  to  put  the  dollar  ahead  of 
the  work  by  treating  them  as  impersonal  things 
to  be  rented  as  cheaply  as  possible.  It  is  not 
strange  that  the  Russians  who  went  back  for  the 
revolution  found  nothing  to  praise  and  much  to 
blame  in  our  institutions;  they  had  seen  the 
United  States  through  a  sweat  shop  window. 

This  particular  factory  was  not  a  sweat  shop  in 
any  sense;  it  had  above  the  average  amount  of 
light  and  air.  The  workers  were  treated  well — 
much  better  than  in  any  institution  I  know  of 
employing  foreign  help — but  they  bore  an  imper- 
sonal relation  to  the  company.  And  when  high 
wages  were  offered  outside,  they  left.  New 
employees  had  to  be  hired  and  they  were  pro- 
gressively of  a  lower  and  lower  class — the  men  and 
women  who  were  too  ignorant  to  find  better  jobs 


Industrial   Democracy  67 

or  who  stopped  in  at  the  factory  only  until  they 
could  get  something  better.  They  were  unruly; 
few  cared  if  the  work  were  good  or  bad.  I  hey 
were  content  to  "get  by"  except  for  a  sprinkling 

ol  older  men  who  had  been  employed  for  years  and 
were  past  the  age  when  they  could  venture  to 
seek  outside  employment.  '1  hesc  men  did  their 
work  well  by  habit;  but  there  were  precious  few 
of  them. 

The  problem  was  to  get  this  polyglot  crowd 
interested  in  their  work,  to  make  them  one  with 
tin-  company,  to  introduce  a  spirit  of  cooperation 
which  would  reflect  higher  and  happier  pay  for  the 
men  and  a  better  product  for  the  company.  It 
was  a  serious  problem. 

I  know  that  one  concept  is  international;  that 
every  human  being,  every  dumb  animal  responds 
to  it.  It  is  expressed  in  the  one  word  fustier.  If 
that  idea  could  be  sent  across,  no  longer  would 
there  be  a  problem.  Hut  how  couKl  ir  be  pur 
into  the  nnmU  of  men  who  knew  not  Justice;  who 
had  buit  their  backs  to  injustice  horn  the  day  of 
their  birth;  whose  nearest  word  to  it  was  revenge1 
It  could  not  be  established  by  preaching.  'I  hese 
people  were  elemental.  They  could  learn  only 
from  example.  If  we  wanted  Justice,  Coopera- 


68  Man  to  Man 

tion,  Economy,  Energy,  and  Service,  we  should 
have  to  "show  them." 

If  I  could  establish  Justice  as  a  principle  for 
daily  guidance,  every  other  matter  would  adjust 
itself.  I  brought  all  of  the  people  together  in  the 
biggest  department  of  the  factory  to  try  to  explain 
Justice  as  a  living,  breathing  guide. 

It  is  not  so  difficult  to  meet  and  overcome  op- 
position when  it  is  articulate.  Then  at  least  you 
have  something  definite  to  combat.  But  with 
a  crowd  such  as  this  the  opposition  was  sullen 
and  unintelligent.  Many  could  not  understand 
(what  I  tried  to  tell  them,  while  others,  I  think  the 
majority,  had  become  so  accustomed  to  having 
things  "put  over"  on  them  in  their  daily  life  that 
they  were  frankly  suspicious  and  hostile.  We 
commonly  do  not  realize  that  our  welcome  to  the 
immigrant  consists  in  "taking  him  in,"  in  "hand- 
ing him  something  good."  I  sensed  all  of  these 
things  in  the  air.  I  should  have  been  relieved 
had  a  few  men  spoken  against  the  plan — had  ac- 
tively opposed  it.  But  they  did  nothing  of  the 
sort;  they  just  sat  around  and  listened;  some 
blankly  while  others  glowered.  We  adopted  the 
first  corner-stone  of  Justice  unanimously,  it  is  true, 
but  without  other  than  formal  enthusiasm.  The 


Iiultistri.il   Democracy  69 

Italians  cheered  because  they  naively  like  a  cele- 
bration; tin-  Poles  said  nothing. 

I  explained  the  dividend  .system;  just  how  we 
intended  to  work  together  -  that  we  should  nor 
only  govern  ourselves  but  that  of  all  the  savings 
made  in  the  cost  of  production,  one-half  \\<>uM 
go  to  the  company  and  the  other  half  t<>  them. 
They  asked  a  few  questions  about  this  a  frv, 
details  of  the  hoax  they  suspected  we  should 
play  on  them.  They  did  not  believe  me.  1  he- 
more  experienced  men  in  the  crowd  had  long  been 
familiar  with  the  promises  of  political  candidates 
and,  since  we  were  going  to  have  a  kind  of  political 
orgam/ation,  I  think  they  took  it  for  granted  that 
it  would  be  managed  along  political  lines  and 
therefore  no  promises  whatsoever  would  be  kept. 

In  successive  weeks  we  adopted  a  business 
policy  defining  and  adopting,  after  Justice,  tin- 
three  main  corner-stones  of  Cooperation,  I.con- 
omy,  and  Energy,  and  finally  the  cap-stone  of 
Service.  Tlu-n  we  organi/td,  with  this  policy 
as  a  kind  of  constitution,  a  government  on  the 
same  lines  as  that  of  the  United  States.  \\  c 
formed  a  Cabinet  consisting  of  the  executive 
officers  of  the  company  with  the  president  e-t  tin- 
company  as  president  of  the  cabinet.  1  he  legis- 


70  Man  to  Man 

lative  bodies  were  a  Senate  made  up  of  depart- 
ment heads  and  foremen,  and  a  House  of  Repre- 
sentatives elected  by  the  employees.  The  elec- 
tions to  the  House  were  by  departments — one 
representative  for  each  25  employees,  or,  in  the 
case  that  a  department  had  less  than  20  employees, 
it  combined  with  another  small  department.  The 
various  bodies  elected  their  own  oftcers  and 
adopted  by-laws  covering  their  procedure.  The 
House  had  as  officers,  a  President,  a  Vice  President, 
a  Secretary,  and  a  Sergeant-At-Arms;  and  these 
standing  committees:  Program,  Imperfect  Mate- 
rial and  Poor  Workmanship,  Suggestions,  Public- 
ity, Safety,  Flag,  and  Educational.  The  official 
make-up  of  the  Senate  was  similar  to  that  of  the 
House. 

I  tried  to  make  it  clear  to  everybody  that  hence- 
forth we  should  be  governed  exactly  as  the  coun- 
try in  which  we  are  living  is  governed.  They 
were  told  that  all  complaints,  all  grievances,  all 
disputes  over  rates  or  wages,  should  be  presented 
to  their  representatives  in  the  House  who  would 
take  them  up  in  meeting,  and  after  a  fair  and  open 
discussion,  try  to  arrive  at  a  just  decision.  That 
all  laws  and  measures  affecting  the  conduct  of  the 
factory  would  have  to  pass  the  House  and  Senate 


Iiulustri.il  Democracy  71 

and  be  approved  by  the  Cabinet.  That  they 
were  now  under  democratic  rule— under  tin  it  own 
rule,  and  they  were  expected  to  make  light  use 
of  the  powers  that  had  been  given  to  thtin. 

1  his  aroused  at  least  .some  interest.  1  think 
that  most  of  them  were  cuiious  to  know  what  was 
going  to  happen.  I  cannot  say  that  they  had 
moie  than  a  cunositv.  Without  knowing  it,  they 
began  to  wotk  a  little  better  than  they  had,  for 
at  the  end  of  the  first  two  weeks  we  found  that 
we  could  distribute  a  dividend.  1  hat  dividend 
was  real  evidence! 

Their  initial  interest  was  purely  financial. 
These  people  had  no  practical  and  precious  little 
theoretical  conception  of  democracy.  The  Poles 
had  bxX-n  born  under  the  rule  of  old  Russia. 
They  knew  law  and  government  only  as  some- 
thing which  restricted  and  punished.  Represen- 
tative government  meant  nothing  to  them;  they 
had  heard  vaguely  of  various  assemblies  but 
had  never  discovered  that  the  form  ot  government 
made  much  difference  in  their  actual  condition. 
Of  course  they  had  lived  in  the  I'mted  States; 
some  of  them  were  naturalized  and  had  voted; 
but  without  any  particular  idea  of  what  it  all 
meant — certainly  without  a  conception  that  the 


72  Man  to  Man 

voter  was  the  ultimate  ruling  power.  They  were 
in  America  to  make  more  money  than  at  home. 
They  cared  little  for  theory — any  one  might  have 
the  theory,  they  would  take  the  cash.  For  co- 
operation in  the  abstract  they  cared  not  at  all. 
The  dividend  taught  cooperation.  For  instance, 
a  number  of  men  decided  to  celebrate  an  Italian 
holiday.  They  stayed  out.  At  the  next  meeting 
of  the  House  of  Representatives  it  was  announced 
that  the  dividend  would  be  only  12%  but  that  it 
would  have  been  higher  had  not  so  many  men  taken 
a  holiday.  That  is,  a  man  who  earned  $20  a  week 
got  a  dividend  of  $2.40  instead  of  $3.00 — he  lost 
60  cents  because  some  other  fellows  did  not  work. 
It  is  one  thing  to  leave  a  shop  knowing  that  only 
the  company  and  yourself  will  lose  money  by  your 
act,  but  it  is  quite  another  matter  to  realize  that 
your  fellow-workmen  also  lose  money — money 
they  need.  The  dividends  are  the  most  practical 
and  forceful  argument  for  cooperation.  They 
reduce  talk  to  the  universal  common  denominator 
—to  saying  something  like  this:  "Because  Pete 
and  Tony  stayed  out  three  days  you  fellows  lost 
20  cents  each." 

The  workers  ventured  into  industrial  democracy 
searching   for   cash;   they   stayed   because    they 


Iiidustri.il  Democracy  75 

liked    the    idea.      1  lu  y    saw    and    learned— but 
slowly. 

I  he  representative  s\  su -m  dul  nor  work  smooth- 
ly. Some  of  those-  \vh<>  h.ul  !u-<  n  elected  did 
not  attend,  while  others  fc-Il  oil  in  th<  ir  attendance 
because  their  fellow-workmen,  although  electors, 
jeered  at  them.  'I  he  House  member,  \\i  ir  Mipn- 
sensitive— they  were  as  temperamental  ;r,  pinna 
donnas.  1  he  minutes  show  some  ol  the  tM.r^Ks. 
Heie  is  what  one  session  of  the  House  had  to  con- 
tend with: 

Miss  F.uvre  stated  th.it  slu-  li.ul  interviewed  Mr.  Cortegiano 
who  s.iul  th.it  owing  to  the  trouble  lie  .'i.ui  \\ith  Mr.  1  rtink 
thrcr  NM-cLs  .i^>>.  In-  thought  it  \MM  r  t  >  ii  M.-M,  ar.d  tin-  f.u  t 
that  a  rivort.1  of  this  nn\-up  h.ul  !>cin  nuhulcd  in  the  r;;i:;utcs 
of  th.it  incrtinu,  lu-  h.ul  iltviJril  t->  re-' -:\.  It"  I'M,  h..il  iK-t 
been  .uKlcil  t"  tin-  initmtrs.  In-  \\msul  n"t  \\is!i  t->  itM^n. 

Mr.  1  home  rrptirti-d  th.it  Mr.  Cortt-pi.mo  s.iul  that  lu-  \\as 
not  smart  enough  to  nunglc  with  the  other  represent. iti\  r<f 
and  that,  as  this  was  n<>  government  house,  he  tlioup.h.t  it  un- 
necessary to  hand  in  an  official  resignation  a:ul  h.ad  just  st.i\ed 
away  from  the  meetings. 

'I  he  President  was  of  the  opinion  th.:t  t!.;>  \vjs  a  >i^n  of  in- 
suhordination. 

The  committee  was  instructed  to  till  Mr.  (/orte^uno  t!iat 
the  minutes  of  each  meeting  must  con^^t  "t  e\erythmg  that 
is  performed  at  each  meeting,  and  that  this  is  an  unreasonable 
excuse;  also  to  assure  Mr.  Cortegiano  that  he  is  perfectly 
welcome  to  come  back  to  the  House.  Miss  r.iivre  v,  as  di- 
rected to  report  at  the  next  meeting. 


74  Man  to  Man 

Mr.  Reina  of  the  Polishing  Dept.  handed  his  resignation 
to  the  President,  which  read  as  follows: 

"I  beg  to  present  to  you  my  resignation  as  representative 
of  the  Polishing  Dept.  for  the  following  reasons: 

"Friends  who  desire  an  increase  in  the  price  of  pipes  come 
to  me  continually.  Mr.  Steiler  and  myself  spoke  about  this 
to  the  foreman  who  told  us  that  all  the  men  desiring  an  in- 
crease should  give  in  their  names,  and  he  would  give  them  to 
Mr.  Feuerbach.  We  accordingly  did  this  and  gave  the 
foreman  a  list.  After  a  few  hours,  he  feared  to  present  the 
list  to  Mr.  Feuerbach.  The  workers  became  indignant  and 
demanded  my  resignation.  I  believe  it  is  superfluous  to  add 
that  the  increase  is  asked  on  account  of  the  exceeding  high 
cost  of  living. 

(signed)  GIOVANNI  REINA." 

Mr.  Reina  and  Mr.  Steiler  explained  that  this  had  hap- 
pened over  two  weeks  ago,  and  no  reply  had  been  received. 
The  meeting  said  that  this  was  an  injustice  on  the  part  of 
the  foreman;  it  was  wrong  to  direct  Mr.  Reina  to  make  up  a 
list,  and  then  do  nothing  in  reference  to  it.  It  was  moved 
that  the  House  should  not  accept  the  resignation  of  Mr. 
Reina,  as  he  was  doing  his  duty.  Mr.  Moll  seconded  this 
motion,  and  the  resolution  was  carried. 

A  few  members  quickly  caught  the  theory  of 
representative  government.  Of  course  at  first  they 
believed  that  the  whole  idea  was  a  fake.  They 
came  to  show  us  up,  but  they  turned  out  to 
be  the  real  constructive  force.  They  had  to  be 
convinced;  but  once  they  had  a  conviction  of  our 
sincerity,  they  were  willing  to  go  to  any  length 
to  make  the  experiment  a  success.  They  knew 


Industrial   Democracy  75 

and  were  in  touch  with  the  mass;  they  knew  the 
mass  psychology. 

I  or  instance,  half  a  dozen  men  who  could  nor 
speak  Knghsh  walked  our.  We  took  it  up  at  a 
House  meeting.  ( )ne  of  t!u-  "agitators"  explained 
"These  fellows  do  not  speak  F.nghsh.  All  that 
they  know  how  to  do  when  they  do  not  like  any- 
thing, is  to  strike.  That  is  the  only  way  they  can 
express  themselves." 

The  House  appointed  a  committee  to  investi- 
gate and  traced  the  whole  trouble  to  some  trivial 
error  of  allotment  in  the  work;  it  had  not  been 
called  to  the  attention  of  the  head  of  the  depart- 
ment. The  committee  hunted  up  the  men,  talked 
to  them  in  their  own  language,  and  had  them  back 
within  a  few  hours.  This  incident  brought  up  the 
importance  of  having  a  single  language  in  the 
plant  instead  of  half  a  do/en.  I  he  House  was 
discussing  a  house  ^rgan  for  general  circulation  m 
the  factory.  Read  the  minutes: 


Someone  asked  whether  it  would  he  advisahlc  to  hive  the" 
paper  printed  in  different  languages.  1  he  people  who  live 
in  this  country  must  speak  Lnglish  some  time  and  they  might 
as  well  learn  now.  It  we  keep  on  punting  in  different  lan- 
guages the  people  will  not  learn  to  speak  Knglish.  \S  c  ought 
to  print  it  in  one  language  only— English. 


76  Man  to  Man 

Take  another  case.  It  is  the  custom  in  nearly 
all  factories  employing  foreign-born  people  to  post 
signs  in  the  varied  tongues  of  the  workers  and 
some  foremen  are  retained  largely  because  of  their 
knowledge  of  the  languages.  The  representatives 
decided  that  this  practice  must  be  changed.  They 
resolved  that  all  foremen  should  give  instructions 
in  English  and  only  in  English.  That  the  same  rule 
should  apply  to  all  notices;  that  this  was  to  be 
known  as  an  English-speaking  shop  and  that  any 
one  who  did  not  understand  the  language  should 
learn  it.  To  help  those  who  wanted  to  learn,  they 
asked  the  company  to  provide  classes  for  the 
teaching  of  English.  These  classes  are  now  doing 
splendid  work. 

They  were  determined  that  no  dividends  were 
going  to  be  lost  in  that  place  just  because  some  of 
the  people  could  not  understand  what  was  going 
on. 

Unhesitatingly  I  say  that  the  dividends  were  the 
first  feature  of  the  new  plan  to  awaken  interest— 
they  were  our  first  "point  of  contact."  It  is  not 
cynical  to  say  that  the  easiest  way  to  reach  any 
one's  heart  is  through  his  pocketbook,  though  it 
must  be  borne  in  mind  that  merely  putting  money 
into  a  pocketbook  does  not,  in  natural  sequence, 


Iiultistri.il   Democracy  77 

reach  the  hcait  ami  attract  the  interest.  Increas- 
ing wages  may  cause  tin-  recipient  to  think  that 
\  ou  are  generous,  more  than  likely  it  \\ill  convince 
him  that  you  ate  an  "easy  maik."  Neither  con- 
viction makes  for  good  work,  \\ages  must  he 
based  on  service  rendered.  An  overpaid  man  lias 
as  little  of  the  cooperative  spirit  as  one  who  is 
underpaid. 

That  mass  of  men  awakened  to  the  knowledge 
that  there  was  justice  in  tins  world  through  the 
stimulation  of  the  pay  and  dividend  envelopes. 
But  not  because  of  the  contents— because  of  the 
essential  justice  of  the  sums. 

A  group  claimed  that  their  rates  were  unjust, 
that  with  a  certain  style  of  pipe,  a  man  might 
make  a  third  more  in  a  day  than  with  another 
style;  thus  the  distribution  ot  work  and  not  the 
ability  of  the  workman  controlled  the  day's  wages. 
Under  the  old  system  this  complaint  until  J  have 
been  directed  to  the  foreman  and  he  would  have 
said  "Yes"  or  "No"  and  his  answer  would  have 
been  final,  t  ruler  the  new  system  the  complaint 
went  to  a  representative  and  he  brought  it  up  he- 
tore  the  House.  I  he  House  appointed  a  commit- 
tee, they  fully  investigated  and  tendered  a  report 
stating  just  how  and  why  the  rates  were  incorrect 


78  Man  to  Man 

and  recommending  certain  changes.  The  bill 
then  went  to  the  Senate,  was  passed  by  it,  and 
finally  approved  by  the  Cabinet.  The  origi- 
nal complainants  grasped  the  justice  of  all  this. 
Not  only  were  they  satisfied  with  the  specific  action 
but  they  found  a  sense  of  future  security.  Other 
wage  complaints  came  up,  were  similarly  investi- 
gated, and  decisions  arrived  at.  Some  of  the 
decisions  were  affirmative  and  others  negative. 
Formerly,  when  a  foreman  refused,  discontent  had 
followed.  But  the  force  of  public  opinion  now 
sustained  the  democratic  decisions. 

Slowly  the  spirit  of  justice  began  to  percolate 
thro  ^h  the  organization.  The  mass  awakened; 
the  foremen  awakened;  all  of  them  began  to  realize 
that  there  were  merits  in  self-government.  The 
people  learned  that  they  had  their  destinies  in 
their  own  hands.  The  foremen  learned  they 
could  make  good  showings  in  their  departments 
only  by  leading  and  not  by  driving  the  people 
under  them.  The  superintendent  of  the  factory 
began  to  thaw  out.  He  had  held  that  the 
factory  force  was  a  working  army  and  should 
be  ruled  with  stern,  military  discipline.  But  jus- 
tice got  him!  He  mellowed;  he  began  making,  al- 
though at  sufficiently  long  intervals,  remarks  that 


Industrial   Democracy  79 

were  not  reprimands.  And  as  he  progressed  on 
the  road  to  humanity  so,  keeping  pace  with  his 
own  progress,  went  his  popularity  and  authority. 
Where  he  had  been  hated  he  was  liked,  and  no- 
body appreciated  the  change  more  than  did  he 
himself. 

In  the  patching  department,  where  they  putty 
up  the  defects  in  the  lower  grade  pipe  bowls, 
was  a  group  of  middle-aged  Italian  women.  They 
all  had  hair-trigger  dispositions  and,  their  work 
being  monotonous,  were  always  on  edge  for  excite- 
ment. 1  heir  leader  was  Rosa,  a  brawny  Amazon 
of  perhaps  34  with  flashing  eyes  set  in  a  round, 
swarthy  face  out  of  which  could  race  countless 
words  per  second.  I  had  taken  pains  to  make 
myself  popular  with  Rosa  and  her  companions;  I 
knew  that  their  force  for  destruction  might,  rightly 
directed,  make  for  construction. 

We  had  in  a  committee  meeting  been  discuss- 
ing poor  patching.  I  asked  one  ot  the  Committee- 
men  to  point  out  to  Rosa  that  she  was  not  patch- 
ing to  the  best  advantage.  He  did  not  like  the 
assignment  but  I  promised  to  join  him  in  the 
department.  I  entered  perhaps  a  minute  after 
him.  I  saw  a  wild  Rosa  on  her  feet. 

"You  no  like  mv  work?"  she  shouted.     "Come 


8o  Man  to  Man 

on,  girls,"  and  in  an  instant  the  whole  department 
was  up,  rallying  around  Rosa. 

The  Committee-man  hurried  to  Rosa,  glaring  and 
defiant,  at  the  head  of  her  cohorts.  Just  as  though 
she  had  been  a  child  he  took  her  arm:  "Aren't  you 
ashamed,  aren't  you  going  to  try  to  help  me  when 
I'm  trying  to  help  you?  Aren't  you  ashamed  to 
act  this  way?" 

She  stopped  talking.  She  dropped  into  a  chair 
and  I  saw  that  she  was  crying. 

"I  do  so  bad.     You  speak  so  kind." 

The  House  investigated  and  this  is  what  the 
minutes  show: 


Miss  Bachman  came  down  with  firsts,  light  seconds  and 
good  seconds  that  were  broken  out  pretty  good.  The  patch- 
ing was  all  right  but  the  cavity  was  too  big.  We  spoke  to 
that  one  woman  and  she  had  a  whole  lot  to  say.  They  are 
getting  sick  of  us.  Miss  Bachman  went  off  and  I  started 
going  my  rounds  the  same  as  usual  trying  to  teach  them  how 
to  take  the  defects  out.  I  kept  on  until  I  came  to  one  woman 
with  a  dozen  pipes  very  bad  putting  them  aside  and  taking 
only  the  good  ones  she  started  in  to  argue  they  were  all  bad. 
I  was  talking  to  someone  else  and  she  was  still  talking.  All 
at  once  she  held  up  her  hand  and  said  "Stop."  I  asked 
what  was  the  matter.  She  said  she  was  going  on  the  strike 
so  I  told  her  to  sit  down  and  not  do  anything  like  that. 

Mr.  Smith  (the  foreman  of  that  department)  may  have 
been  a  good  piece  worker  but  is  not  any  good  as  a  foreman. 
The  House  of  Representatives  therefore  recommends  that  Mr. 


Iiuliistri.il   DcmcKTacy  Si 

Smith  of  tlir  patching  department  be  given  an  opportunity 
t'i  work  in  viinr  other  department  of  thu  plant.  ri"t  4»  fore- 
man because  \%e  consider  tint  tir  is  not  a  profitable  foreman, 
tli.it  in  tiis  place  thrie  should  l>r  put  .1  new  foreman  of  tlic 
patching  department.  \\  c  recommend  Mr.  1  run  It  and  we, 
the  members  of  the  House  of  Rrprcsrntatix  rs,  hereby  guar- 
antrr  to  linn  our  lull  su;<j>utr  arul  coopcf ation  to  aid  him  in 
making  that  department  a  succ'ess. 

In  the  minutes  of  the  next  meeting,  the  result  of 
the  change  is  Set  down: 

With  one  or  two  I  had  a  lot  of  trouble.  One  of  the  women 
sj>caks  pretty  p»>d  Hnfjlish  and  she  explained  everything. 
It  is  real  hard.  I'  ro;n  nu\v  on  things  will  run  altogether  dif- 
ferent. In  .i!>out  a  couple  of  weeks  we  will  sec  tjuitc  an 
improvement  m  t!u-  pipes. 

Mr.  Trunk  st.ifc-l  th.it  he  thought  he  would  have  sonic 
trouble  with  the  Italian  women  but  Cantoni  (a  Representa- 
tive) told  v>me  of  t!ie:n  tliat  Mr.  I  rnnk  w.is  a  pood  man  and 
now  the  worst  ha\e  turned  out  best.  Mr.  Schmidt  moved 
that  we  extend  a  vote  of  thanks  to  Mr.  Cantoni  for  co- 
operating with  Mr.  I  r;mk. 

In  other  words,  the  House  of  Representatives, 
composed  of  workers,  recommended  the  removal 
of  a  foreman  because  he  was  incompetent!  Alter 
that  a  foreman  held  his  place  only  it  he  were  just 
and  competent—  and  no  just  and  competent  fore- 
man was  removed.  1  hat  put  the  workers  and 
the  supervisors  in  the  n^ht  relation.  In  the  he- 
gmning  the  workers  had  been  all  aid  to  complain 
to  their  representatives  about  a  foreman  and  it 


82  Man  to  Man 

they  did  the  representative  was  fearful  of  taking 
the  complaint  before  the  House  lest  it  might  come 
to  the  ears  of  the  foreman  and  he  would  be  hazed; 
a  workman  fears,  more  than  a  discharge,  the  ill- 
will  of  the  foreman.  It  took  some  time  to  let  both 
the  workers  and  the  foremen  know  that  complaints 
were,  in  a  measure,  impersonal  and  stimulants  to 
better  business. 

The  labor  turnover  throughout  the  plant  was 
serious;  as  soon  as  the  Representatives  and  Sena- 
tors realized  that  this  affected  dividends,  they 
investigated.  They  found  that  in  the  sand- 
papering department,  which  was  the  largest, 
75%  °r  more  of  the  workers  left  or  were  discharged 
within  a  period  of  12  months.  Often  men  taken 
on  in  one  day,  one  left  the  same  day,  two  the  next 
day,  three  stayed  about  three  weeks,  and  the  re- 
maining four  left  gradually  over  a  period  of  six 
weeks,  all  stating  that  the  work  was  too  hard  for 
the  money.  The  work  was  hard  and  disagree- 
able, involving  the  shaping  of  the  pipe  against  a 
high-speed  convex  disc  covered  with  sandpaper. 
There  are  various  grades  to  the  work,  one  group 
using  a  very  rough  quality  of  sandpaper,  the  next 
a  somewhat  finer  quality,  and  so  on  until  the  pipe 
becomes  perfectly  shaped  and  absolutely  smooth. 


Industrial   Democracy  83 

The  work  is  expert  because  not  only  must  the  eye 
judge  the  proper  shaping,  but  the  hands  and  wrists 
of  the  operator  have  to  be  very  flexible  to  make 
quickly  the  necessary  turns  and  twists  with  just 
the  right  pressure  of  the  pipe  against  the  wheel. 
Klderly  men  are  too  stiff  jointed  to  learn  the  work, 
so  the  recruits  are  drawn  from  boys  ranging  be- 
tween 18  and  25.  The  work  is  dusty  and  tedious 
and  does  not  appeal  to  the  better  class  of  young 
men.  As  a  rule,  less  than  half  of  the  men  in  the 
department  know  more  than  a  few  words  of  Eng- 
lish. Yet  it  is  a  critical  section.  They  can  make 
or  mar  the  pipe.  The  least  slip  of  the  operator's 
hand  will  ruin  the  "stummel"  beyond  repair, 
but  if  the  sandpapering  department  is  not  working 
to  capacity  every  department  after  it  is  held  up. 
Commonly  about  125  men  are  employed;  the  best 
of  them  will  earn  on  piece  rates  between  $50  and 
£40  a  week  with  an  average  of  about  £24.  'I  here 
is  no  fund  of  skilled  labor  to  draw  on  for  vacancies. 
The  raw  man  must  be  taken  in  and  taught  and  of 
course  he  has  to  be  paid  while  being  taught.  The 
initial  rate  of  pay  is  below  that  of  the  lowest  piece 
worker;  a  beginner  goes  on  piece  rates  when  his 
output  at  piece  work  exceeds  the  weekly  flat  wage 
at  which  he  began.  It  formerly  took  a  long  tims 


84  Man  to  Man 

to  make  even  a  second-class  operator,  and  because 
of  the  long  training  at  low  wages,  less  than  20% 
of  the  new  men  stuck  through  to  go  on  piece 
rates.  The  personnel  was  constantly  shifting 
and  the  foreman  in  that  department  was  always 
at  his  wits'  end  to  keep  up  production. 

Calculating  that  it  cost  the  company  $100  to 
train  a  sandpaperer,  which  investment  was  lost 
when  the  man  left,  it  was  demonstrated  that  the 
company  lost  through  the  year  in  this  single  de- 
partment an  amount  of  money,  which,  if  saved, 
would  pay  about  $14,000  in  a  dividend  to  the 
employees. 

Those  figures  impressed  the  sandpaper  shop. 
They  set  about  finding  ways  and  means  to  get  the 
dividend.  Their  first  step  was  to  cut  down  the 
training  period.  They  suggested  that  certain  of 
the  men  be  employed  to  teach  newcomers.  The 
result  was  that  new  men  found  themselves  making 
a  satisfactory  wage  on  piece  rates  at  the  end  of 
about  three  months.  It  became  a  matter  of  mo- 
ment when  a  worker  said  that  he  was  going  to 
quit;  his  fellows  got  around  him,  tried  to  find  out 
what  the  trouble  was,  and  to  persuade  him  to 
stay.  Their  whole  attitude  toward  each  other 
changed.  Formerly  they  had  gangs  and  cliques, 


Iiulustri.il    Democracy  85 

especially  flu-  Italians;  if  a  man  became  unpopu- 
lai  lu-  had  to  get  out  and  if  he  did  not  get  out 
In-  was  apt  to  pet  hurt.  Hut  all  of  that  ended 
\\hen  they  found  that  forcing  a  worker  out  was 
money  out  of  pocket.  That  put  quite  a  different 
face  on  it.  1'irsr,  they  found  that  it  was  finan- 
cially better  to  have  harmony;  then  they  dis- 
covered it  was  a  nicer  way  to  work. 

The  ordinary  workman  just  "pets  by."  He. 
Seldom  suggests  new  improvements.  In  the 
beginning  he  may  think  of  how  to  do  something 
better  but  when  he  makes  Ins  suggestion  to  the 
foreman  he  finds  that  it  is  not  welcome  and  there- 
after he  keeps  to  himself  any  ideas  he  may  have. 
Foremen  are  constitutionally  opposed  to  change. 
'1  he  Senate  and  the  House  appointed  a  joint  Com- 
mittee on  Suggestions  and  made  a  schedule  of 
prices  with  further  rewards  ar  the  discretion  of 
the  Cabinet.  They  got  suggestions.  '1  he  making 
of  pipes  had  been  more  or  less  static.  So  much 
of  the  work  is  done  by  hand  that  it  has  adhered 
pretty  closely  to  the  practices  ot  tin-  t  Kl  country. 
I' or  instance,  someone  hail,  years  before,  invented 
a  machine  for  the  rough  cutting  of  the  block 
which  later  becomes  a  pipe.  I  asked  it  it  were  a 
satisfactory  machine. 


86  Man  to  Man 

"Yes,"  was  answered  proudly.  "We  have  not 
had  to  change  or  improve  it  in  25  years." 

There  were  quite  a  number  of  these  machines. 
I  felt  that  no  machine  had  so  nearly  attained  per- 
fection that  it  could  not  well  be  changed  in  a 
quarter  of  a  century.  And  surely  enough,  once 
the  suggestion  idea  got  about,  an  employee  came 
forward  with  a  plan  for  a  new  machine.  It  was 
built  according  to  his  designs.  One  man  with 
this  machine  does  as  much  as  six  men  operating 
six  of  the  old  machines. 

The  polishing  and  buffing  of  a  meerschaum  pipe 
is  a  highly  delicate  operation  which  has  always 
been  performed  by  hand.  The  foreman  of  that 
department  devised  a  machine  to  replace  the 
hand  movement.  He  demonstrated  that  one 
man  with  it  was  more  than  equal  to  three  hand 
workers.  The  foreman  of  another  department, 
a  man  who  had  been  making  pipes  for  at  least 
40  years,  examining  the  little  device,  said:  "This 
is  the  best  thing  I  have  ever  seen  in  pipe  making." 

Look  at  a  few  more  improvements  that  came 
from  the  men.  An  improved  chuck  for  boring 
rubber  bits  increased  the  production  about  300% 
and  did  not  require  expertness  in  operation.  The 
old  boring  machine  could  be  managed  only  by  an 


Industrial   Democracy  87 

experienced  workman.  A  first-rate  man  could 
mount  15  do/rn  bakehtc  bits  a  day.  Using  an 
improved  screw,  the  same  man  now  mounts  three 
gross  per  day  and  the  improved  scu\v  will  wear 
better  and  longer  than  the  old  on«.  Muslin 
buffs  soon  become  hard  and  lose  their  effective- 
ness. Formerly  they  were  cleaned  and  roughened 
with  sandpaper  and  a  knife.  After  this  rough 
cleaning  they  were  not  satisfactory;  nor  a  few- 
were  cut  in  the  handling  and  ruined.  A  buffer 
made  a  tool  with  which  he  could  both  clean  and 
roughen  a  buff  in  a  few  seconds— and  the  reno- 
vated buff  was  as  good  as  new.  Under  the  old 
process  of  staining  Congo  pipes,  the  production 
was  12  gross  a  day.  Under  a  new  process,  the 
production  became  109  gross.  Meerschaum  pipes 
have  to  be  finally  polished  after  the  ferrules 
are  in  place;  all  gold  work  had  to  be  by  hand 
because  machine  polishing  scratched  the  gold.  A 
foreman  designed  a  metal  device.  'I  he  best  that  a 
good  female  polisher  could  do  under  the  old  system 
was  three  dozen  a  day.  The  work  required  no  par 
ticular  skill,  high  wages  could  not  be  paid,  and  the 
hand  polishers  were  always  discontented.  I  sing 
the  new  protector  and  a  machine  one  woman  can 
now  turn  out  from  15  to  18  dozen  a  day — or  the 


88  Man  to  Man 

output  equivalent  of  five  or  six  girls  under  the 
former  method. 

Go  back  to  the  patching  department.  The 
men  discovered  that  far  too  many  seconds  and 
thirds  were  coming  through.  Their  dividends  lay 
in  "firsts."  A  joint  Committee  of  the  House 
and  Senate  took  up  the  subject.  They  visited 
the  patchers.  It  had  been  the  custom  of  the 
patchers  to  rim  out  a  knot  hole  with  a  sharp 
knife  and  then  fill  the  cavity  with  a  special  kind 
of  putty.  They  might  thus  carelessly  turn  a 
small  hole  into  a  big  one  and  transform  a  potential 
first  or  second  into  a  bad  third.  Skill  had  never 
been  at  a  premium  in  that  department.  A  hole 
was  just  a  hole.  Then  the  committee  began  to 
plan  changes — to  become  efficiency  engineers. 

They  decided  that  instead  of  a  rough  task  this 
was  really  one  requiring  an  artist.  If  a  dentist 
could  fill  a  tooth  so  that  the  filling  would  remain, 
could  they  not  similarly  plug  a  hole  in  a  bit  of 
wood?  They  took  a  page  from  the  dentist's  book. 
They  turned  hundreds  of  former  seconds  into  firsts 
and  former  thirds  into  seconds. 

Under  piece  rates  the  workers  press  for  quantity. 
A  company  makes  its  money  out  of  quality.  The 
emphasis  in  this  factory  was  placed  on  quality; 


Inciiistri.il   Democracy  89 

Through  the  dividend  svstrm  the  men  came  to 
know  that  although  rushing  their  work  and  turn- 
ing out  inferior  goods  might  increase  their  indi- 
vidual pay  it  would  so  decrease  the  mass  dividend 
that  their  net  return  would  he  less  than  if  they 
had  devoted  themselves  to  perfect  goods.  From 
the  minutes  cf  the  House:— 

Miss  Madeline  Wojtyniak  said  that  the  piece  workers  Am- 
orally rush  their  work,  in  order  to  earn  more  money;  therefore, 
the  work  is  not  as  go<xl  as  it  should  he.  JJuantity  is  con- 
sidered before  quality  with  a  piece  worker.  She  moved  that 
a  committee  l>e  appointed  to  look  into  the  condition*  and 
that  gix>ds  should  be  examined  before  they  are  polished.  If 
the  week-workers  are  doing  the  ri^ht  thing  the  House  should 
know  it.  1  here  is  about  £16,000  at  stake,  and  \\e  arc  either 
pomp  to  save  it,  or  continue  to  lose  it.  A  committee  should 
be  appointed  who  understands  this  work,  who  would  >;ct  to- 
gether, investigate,  and  bring  in  reports.  Perhaps  the  cure 
for  these  men  is  better  supervision,  one  who  will  teach  his 
people  what  is  necessary  to  make  Roods  ri^ht.  Whatever 
ideas  the  committee  have  should  be  presented  to  cure  this 
defect.  \\  ho  pets  out  the  greatest  amount  of  imperfect 
goods'  Suggest  that  there  is  a  cure  for  this  by  all  people 
being  put  on  piece  work,  or  week  work,  whichever  the  case 
may  be.  Then  the  matter  can  be  taken  up  with  the  Senate 
after  the  reports  are  in. 

They  did  attain  quality  and  also  production  in 
a  most  remarkable  fashion.  One  department 
had  a  former  record  of  25  gross  of  pipes  a  week 
with  three  men  working.  Thev  increased  their 


90  Man  to  Man 

force  to  ten  men  and  attained  an  average  of  50 
gross  a  day.  One  man  turned  in  a  record  of  240 
gross  of  pipes  in  one  week — beating  all  former 
records.  The  sandpapering  department  increased 
its  wages  through  increased  production  by  10% 
and  on  the  quality  side  there  was  an  even  greater 
improvement.  The  big  production — in  spite  of 
poor  material — is  in  "firsts"  and  "seconds" 
while  before  "thirds"  and  "fourths"  were  heavily 
represented.  The  whole  product  of  the  company 
has  gone  to  a  considerably  higher  plane  than  ever 
before.  The  stress  has  been  on  quality — that 
has  been  first.  Quantity  has  come,  as  a  matter  of 
course — but  it  has  come. 

And  this  quantity  arrived  during  shorter  work- 
ing hours.  They  had  been  working  53  hours. 
Then  they  reduced  to  50 — with  a  10%  increase 
in  production.  Now  they  are  experimenting  with 
a  48  hour  week.  They  are  doing  all  this  them- 
selves and  at  the  same  time  watching  dividends. 
They  have  touched  iy|%  in  dividends  and  they 
intend  to  go  higher.  They  have  an  esprit  de 
corps.  They  have  designed  service  buttons. 
They  compete  by  departments  for  efficiency  rec- 
ords— the  leading  department  holds  the  Stars 
and  Stripes  for  a  two  weeks'  period.  And  they 


Iiulustri.il    Democracy  91 

ft^lit  hard  tor  that  flag!  The  buffers  have  pledged 
themselves  to  do  50  pross  of  pipes  tf>  a  hufi  us 
their  contribution  toward  saving  material  in  war 
tune.  They  now  use  three  where  they  had  used 
four  hufls. 

And   so   it   goes. 

Hut  inatk.  this.  That  factory  formerly  could 
hardly  pet  its  complement.  Now,  with  labor  even 
scarcer,  it  has  a  waiting  list! 


CHAPTER  V 

THE   SUPERVISION  THAT  COUNTS 

THE  Committee  on  Seconds  of  the  Shelton 
Looms  found  annually  going  into  the  ware- 
house a  great  pile  of  fine  velvets  worth  $500,000 — 
at  least  they  would  have  been  worth  that  sum  were 
they  perfect.  But  they  were  not  perfect — each 
piece  had  one  or  more  defects.  The  best  material 
had  gone  into  them;  they  had  absorbed  the  usual 
amount  of  power  in  fabrication,  they  had  taken 
their  share  of  the  big  overhead  expenses,  but,  be- 
cause someone  had  been  careless,  these  splendid 
stuffs  could  not  be  sold  as  the  trademarked  product 
of  the  company. 

Of  course  the  management  knew  of  this  waste; 
the  foremen,  too,  knew  about  it;  but  neither  they 
nor  the  weavers  realized  what  it  all  meant — they 
did  not  stop  to  think  that  the  big  output  of 
seconds  had  a  direct  influence  upon  wages  and  the 
steadiness  of  work,  nor  that  if  the  company  did 
not  make  standard  goods,  it  could  not  earn  prof- 
its. The  company  did  make  standard  goods  and 


Industri.il    Democracy  <)$ 

:t  tin!  earn  piohts;  doing  a  business  exceeding  ten 
million  a  year,  the  loss  on  halt  a  million  of  defec- 
tive production  was  not  serious  in  a  financial 
sense.  Hut  it  was  serious  as  a  waste  which  might 
be  avoided. 

Sidney  Hlumenthal  &  Co.  owns  the  Slulton 
Looms.  1  hey  had  for  years  tried  in  every  fashion 
to  be  fair  with  their  employees.  They  paid  cur- 
rent wages  and  worked  current  hours.  They 
had  tine,  modern  factory  buildings  and  were  not 
behind  in  any  improvement.  It  could  never  be 
said  of  them  that  they  were  penny  wise  and  pound 
foolish  in  dealing  with  any  phase  of  their  business. 
They  had  never  had  acute  labor  trouble  or  more 
than  the  usual  and  commonplace  disagreements 
with  their  men.  Hut  they  had  not  found  a  suffi- 
ciently responsive  chord  in  the  workers.  And  as  a 
consequence  they  did  not  have  the  cooperation  of 
the  workers.  Their  people  worked  for  them  and 
with  the  inevitable  result  -a  proportion  ot  pro- 
duction which  could  not  sell  as  tirsr-grade  goods. 

Located  in  the  Housatonic  Valley  in  Connecticut 
they  were  in  the  big  war  work  /one.  Ansonia, 
Bridgeport,  New  Haven,  and  other  munition 
towns  were  calling  tor  workers  and  offering  high 
wages.  Other  looms  in  the  valley  and  near  by 


94  Man  to  Man 

were  short  of  men.  Anybody  who  could  do  any- 
thing could  get  a  job  and  a  weaver  especially 
found  work  calling  from  a  dozen  directions.  The 
Shelton  Looms  make  fine  velvets  which  require 
extraordinary  care  in  every  process.  The  good 
run  from  the  very  highest  to  a  high  medium  grade; 
they  make  no  cheap  fabrics.  Some  of  the  fabrics 
are  condemned  for  even  the  slightest  flaw.  It  is 
high-class  textile  work  in  which  small  mistakes 
cause  big  losses.  But  the  workers  were  not  afraid 
of  losing  their  jobs  and  they  cared  little  if  they 
did  make  mistakes.  If  a  foreman  tried  to  enforce 
discipline,  the  worker  quit  confident  that  he 
could  get  another  job  before  sundown.  They 
^were  not  interested  in  any  one  job;  they  had  no 
interest  in  anything  but  a  pay  envelope  and  they 
cared  as  little  who  provided  the  pay  as  they  did 
who  made  the  envelope.  Weavers  are  natural 
floaters;  it  is  their  heritage.  They  are  accustomed 
to  being  laid  off  in  dull  seasons;  they  normally 
expect  to  go  from  place  to  place.  They  have 
never  felt  that  any  one  was  particularly  interested 
in  their  going  or  coming  and  finally,  most  of  them 
expect  to  live  and  die  as  weavers.  About  35% 
of  the  i, 800  employees  spoke  imperfect  English 
and  a  fair  percentage  spoke  no  English  whatso- 


Industrial  Democracy  95 

ever.  Very  few  of  them  had  any  idea  of  democ- 
racy or  saw  any  reason  to  cooperate  with  the 
company. 

Such  was  the  soil  in  which  the  seeds  of  democracy 
were  sown.  In  the  former  chapters  I  have  largely 
described  what  was  accomplished  in  each  case.  Here 
let  the  people  themselves  do  the  telling— let  the 
minutes  of  the  Senate  and  the  House  tell  the  story 
of  what  was  done  to  better  the  quality  of  produc- 
tion. They  give  an  idea,  reading  between  the 
lines,  of  the  spirit  of  industrial  democracy: 

(Mr.  Richards):  "I  have  a  little  matter  here  in  regard 
to  which  I  would  like  to  say  a  few  words.  Mr.  Blumenthal 
had  me  on  the  'phone  this  morning  and  said  'Mr.  Richards, 
you  gave  me  an  estimate  indicating  that  from  Sept.  iqth 
you  would  do  certain  things.  In  other  words,  you  would  pro- 
duce so  many  pieces  of  "first"  grade  and  other  qualities.'  I  said, 
'Mr.  Blumenthal,  you  arc  correct,  but  we  have  not  lived  up 
to  our  estimate. '  He  said,  'Give  me  the  reasons.'  I  told  him 
I  would  let  him  see  the  reasons  on  paper.  In  the  first  place, 
we  promised  or  estimated  that  we  would  produce  800  pieces 
of  the  '  first*  quality  for  which  we  had  taken  orders  and  had 
obligations  to  deliver.  Also  75  pieces  of  lonq  pile  and  IOO 
pieces  of  long  pile  silk  Blushes—  nearly  1,000  pieces  to  be  turned 
out.  Since  that  time  we  have  kept  records  which  show  that  we 
produced  the  first  week  — 

4:8   pieces  instead  of  800 

47        "     _    "  "       7; 

and  none  of  the  one  hundred  promised. 
"That  is  about  60' '[ .     My  promise  was  based  upon  70% 


96  Man  to  Man 

efficiency  of  the  finishing  room  and  dyehouse — mainly  the 
finishing  room.  The  statement  shows  distinctly  that  we 
are  not  even  35%  efficient.  So  it  goes  on.  I  have  it  for  three 
weeks.  The  second  week  was  a  little  better  but  not  up  to 
50%.  Last  week  we  fell  down  again.  There  are  a  good  many 
reasons  for  it,  which  can  be  attributed  to  the  weaving,  dye- 
house,  and  finishing  room.  Through  the  weave  room  out 
of  a  total  of  733  pieces  we  had  to  mark  288  pieces  the 
'second'  quality  instead  of  'first,'  which  did  not  enable  us 
to  fill  the  orders  we  had.  In  the  first  place,  we  have  been 
falling  down  about  50%  on  our  estimated  production.  Be- 
sides that,  we  have  made  a  second  quality  instead  of  a  first 
quality  which  we  were  supposed  to  turn  out.  This  is  a  se- 
rious situation. 

"These  matters  are  very  vital  to  our  business.  I  suggest 
that  this  matter  be  taken  up  by  the  House  and  a  special 
committee  appointed  to  look  into  the  matter.  I  do  not  know 
whether  the  committee  should  include  men  from  the  finishing 
room  or  away  from  the  finishing  room.  I  leave  it  to  the 
House.  If  we  want  to  keep  our  business  we  must  be  able  to 
fulfill  obligations  and  orders  on  a  certain  date  when  due  and 
with  goods  properly  made." 

The  House  Committee  brought  in  a  report  and 
here  is  how  the  House  discussed  it.  Much  of  the 
talk  is  technical,  but  the  interest  of  the  people 
is  apparent.  They  are  on  their  mettle. 

One  representative  thought  that  part  of  the 
trouble  was  due  to  the  weavers  not  using  powder 
on  their  hands;  another  believed  that  keeping 
material  wrapped  in  tissue  paper  would  cure  the 
trouble.  Finally  the  discussion  narrowed  down 


Industrial   Democracy  97 

to  whether  thr  winders  or  the  weavers  were  ar 
fault.  They  recommitted  the  report  to  the  com- 
mittee to  discover  whether  or  not  all  were  not  at 
fault  and  with  a  positive  instruction  to  locate  the 
exact  cause  or  causes  before  the  next  meeting. 
They  went  into  various  other  defects  of  the  goods 
such  as  the  "machine  marks."  One  representa- 
tive said  that  they  were  due  to  a  failure  to  handle 
the  loom  correctly  and  that  attention  to  merely 
one  bad  practice  had  eliminated  nearly  50^,'  of 
the  marks  within  ten  days.  '1  he  committee  gave 
in  detail  the  numerous  tests  they  had  made  to 
locate  the  reason  for  machine  marks  and  the 
various  other  defects,  and  recommended  that 
certain  conclusive  tests  might  be  made.  Others 
thought  that  a  contributing  cause  was  carelessness 
in  the  care  of  the  spools.  Here  is  the  discussion 
on  that  point. 

(Mr.  Kenn):  "Mr.  President,  in  the  many  trips  I  have 
made  through  the  Winding  Department,  I  flunk  tli.it  they 
could  £et  a  K»od  l).jsrh.ill  team  out  of  there.  1  hi-y  throw 
the  spools  mt>«  boxes  about  tuc  teet  aw.:}'.  You  could  not  Jo 
that  with  a  COVIT  on." 

(Mrs.  WVM>):  "I  haven't  much  to  S.TV  except  th.u 
it  would  be  wasting  time  to  push  the  boxes  around  and  put 
the  spools  in." 

Mrs.  \\  y.M)  explained  that  the  bo\  of  vp.ii!-,  V..K  brought 


98  Man  to  Man 

over  to  a  girl  who  packed  them  in  cases  to  go  to  the  warping 
room.  She  stated  that  there  was  clean  paper  on  the  boxes. 

(Mr.  Hoson) :  "It  is  cleanliness  we  are  after.  It  is  one 
of  the  things  to  success  in  business.  I  think  the  winders  could 
soon  adapt  themselves  to  these." 

(Miss  Morris):  "There  are  about  50  spools  in  a  box  and 
we  would  have  to  push  them  up  and  down  an  alley." 

(Mr.  Hoson):     "What  do  you  do  with  the  boxes  now?" 

Miss  Morris  explained  that  they  kept  enough  spools  on  the 
frame  so  that  they  could  pick  them  up  when  they  wanted  them 
and  that  the  box  was  kept  at  the  end  of  the  aisle. 

(Mr.  Kenn):  "That's  one  of  the  things  we  are  trying 
to  eliminate.  That's  where  the  oil  comes  from." 

(Miss  Morris):     "There  is  no  oil  on  the  frames." 

(Mr.  Meek):  "I  make  a  motion  that  you  appoint  a  com- 
mittee to  investigate  this  matter." 

Motion  Seconded.     Voted. 

Remember  this  discussion  is  not  at  a  meeting  of 
high-priced  technical  experts.  These  are  ordinary 
workers  talking — men  and  women  of  the  rank  and 
file  using  their  whole  brains  to  discover  why  the 
product  is  not  better.  And  they  are  not  being 
paid  for  the  investigation— it  had  simply  never 
been  put  up  to  them  before  to  remedy  their  own 
defects !  See  how  they  get  at  the  bottom  of  things 
in  a  way  that  an  executive  could  not.  Here  is 
another  meeting — they  are  still  discussing  the 
elimination  of  "seconds." 

(Mr.  Shine):  "Regarding  piece  work  and  a  bonus  for 
quality  against  daywork.  In  the  first  place,  day  rates  would 


Iiuiustri.il   Dc.noeracy  99 

be  very  hard  to  eitabh\h  in  the  weave  »hrd  when  one  con- 
udert  the  tvpr  of  men  there.  It  would  IK-  one  c«»ntinual 
turmoil  for  the  foreman  and  any  one  to  try  to  maintain  peace 
under  a  day  rate  sytlem.  Here  is  the  tendency  in  day  work. 
Suppose  you  give  two  men  $10  a  djy  and  nay  'I  wjnt  perfect 
goods.  Make  what  you  consider  a  fair  day's  production 
but  make  it  perfect.'  Hie  nr\t  djy  one  fellow  makes  8 
yards  and  the  other  10  yards.  I  he  fellow  making  IO  yard* 
will  jay,  '  I  he  other  fellow  made  only  8  yardt.'  He  will 
consider  it  an  unjustice,  and  may  not  kick  but  will  cut  down 
his  production  to  8  yards.  On  a  piece  work  basis,  with  a  bonui 
for  qualitv.  a  man  produces  say  10  yards.  'I  here  is  $5.00. 
Suppose  we  have  a  quality  bonus  of  30%  for  perfect  quality. 
Suppose  the  minor  defects  arc  allowed  to  get  by.  Suppose 
it  takes  an  hour  to  pick  them  out.  1  he  weaver  loses  one 
hour  of  his  productive  capacity  in  picking  out.  He  would 
gain  by  leaving  it  in — one  yard,  perhaps  500.  What  would 
he  lose  by  leaving  it  m? — *  "  on  the  value  of  the  piece  which 
would  amount  to  $1.1$  if  tMc  piece  was  worth  $5.00.  It  is 
to  his  interest  to  pick  out  all  defects. 

"I  nder  present  conditions  does  a  weaver  take  time  to  pick 
out  defects?  No,  he  lets  them  go  by.  I  he-  committee  has 
had  weavers.  loom-fixers,  etc.,  before  them  and  had  te->t!:n"nv 
as  to  the  actual  facts  under  present  conditions.  '1  hey  s..:>l 
they  would  prefer  straight  piece  rate*.,  or  a  combination 
quality  and  productive  bonus.  \\  e  interviewed  about  :i 
people.  We  had  loo' [  weavers---;  or  IO.  I  asLeJ  each 
weaver  a  direct  question.  '\\  hat  would  you  do  provided  there 
was  some  little  defect  in  your  cut  at  present.  1'u  i.  it  our 
and  make  a  perfect  piece  or  let  it  :•_••>  by  .::ul  tale  more  pr>>- 
duction?'  Everyone  said,  *\\  e  would  let  it  :;o  by.'  I  >aid, 
'I  nder  quality  bonus  would  y.ui  do  i::*  1  i-.rv  said,  'No.' 
t'nder  straight  piece  work  they  said:  'We  w. >i:kl  let  it  go  by.' 

"  The  way  it  appears  to  me  is:  I  hat  under  a  flat  day  rate 
no  matter  how  high  or  how  low  it  is,  a  man  on  one  machine 


loo  Man  to  Man 

is  going  to  hold  his  labor  down  to  that  of  the  man  on  the  next 
machine.  You  will  come  to  the  lower  level  rather  than  the 
higher  level,  and  it  will  affect  production  to  a  point  where 
this  company  cannot  compete  with  competitors.  The  com- 
pany could  not  as  a  financial  proposition  adopt  a  plan  of  that 
kind.  They  would  be  bankrupt.  Our  plan  is  not  revolu- 
tionary, and  is  working  toward  better  quality  but  not  looking 
for  absolute  perfection.  It  will  mean  better  quality  from  the 
weavers." 

(Mr.  Regan):  "The  principal  reason  why  a  weaver  may 
be  tempted  to  leave  mistakes  in  his  cloth  under  the  present 
system  of  paying  bonus  is  this:  Suppose  a  weaver  is  allowed 
17  hours  to  weave  a  cut  and  he  loses  one  hour  correcting  mis- 
takes. That  lost  hour  will  be  added  to  his  standard  time 
and  his  efficiency  will  come  down  from  100%  to  94%  approxi- 
mately. If  that  weaver  was  under  straight  piece  rate  he 
would  lose  only  his  yardage  rate  by  correcting  the  mistake, 
which  would  be  about  37c  for  the  hour  while  at  the  present 
time  he  is  losing  37c  in  yardage  rate  and  a  bonus,  which 
amounts  to  about  3  8c,  making  his  total  loss  for  one  hour  of  lost 
time  amount  to  about  7$c.  That  is  why  he  may  be  tempted 
to  leave  the  mistake  in  and  save  7£c.  Under  the  newly 
proposed  plan  of  quality  bonus  payment,  the  weaver  will  get 
a  bonus  for  good  pieces.  He  will  have  either  to  make  good 
goods  or  lose  the  bonus,  which  should  be  at  least  as  big  as  the 
present  bonus  is.  The  bonus  will  spur  him  on  to  make  good 
goods.  I  can  bring  facts  to  the  next  meeting  to  prove  my 
statement." 

As  a  result  of  this  investigation  the  committee 
worked  out  what  they  called  a  quality  bonus. 
The  weavers  were  to  be  paid  a  flat  piece  rate  as 
before,  but  for  a  perfect  piece  they  were  to  receive 
an  extra  sum  of  20%;  if  the  piece  had  one  defect, 


Industrial   Democracy  101 

i  5r,  ;  two  defects  reduced  the  bonus  to  ior' ;  three 
to  5V('  and  four  or  mole  defects  forfeited  the  bonus 
and  reduced  the  pay  to  the  Hat  rate.  Now  in  the 
House  they  are  discussing  the  wisdom  of  adopting 
tlnir  own  suggestions. 

(Mr.  Meek):  "Instead  of  selling  our  gooiU  v.e  ha-.e  l>rm 
putting  them  over  in  the  storeroom.  In  respnt  to  this  new 
bonu<  there  arc  a  good  many  points,  nilt  I  don't  tl.;:ik  for 
a  intnute  that  the  management  has  been  letting  the  old  uric 
go  on  if  it  did  not  have  some  good  points,  \\hcn  you  say  a 
slight  curtailment  of  the  production,  just  how  much  do  you 
mean?  I  make  a  motion  that  the  bill  be  held  over  until 
next  week." 

Here  is  a  side  of  production  that  the  employer  seldom  thinks 
about  --that  before  a  man  can  In-come  truly  skillful  and  turn 
cut  standard  quantity  of  perfect  goods  he  must  pass  years  ar 
a  low  \sagc.  His  alternative  is  to  rush  through  poor  goods 
and  thus,  by  a  large  production,  make  the  standard  wage. 
The  g<x>d  operator,  such  as  the  employer  wants,  can  reach  the 
go.il  only  by  working  against  his  own  pocket-book.  He  is,  in 
irtect,  pcnah/cd  for  good  work,  and  this  representative  puts  the 
matter  \  ery  concretely  in  the  discussion  ot  quality  vs.  quantity. 

i  Mr.  Shine):  "With  regard  to  the  remarks,  on  the  present 
production  bonus  -saying  it  is  perfectly  satisfactory.  He  is 
a  gtKkl  weaver.  I  le  has  no  difficulty  in  turning  out  1<  >ts  of  goods 
but  a  big  majority  of  them  are  not  periect  weavers.  I  hat  is.  1:1 
order  to  reach  the  loo'  ,'  mark  they  have  to  hurry  and  spoil  the 
goods— have  to  leave  defects  in,  they  do  net  come  t.»  the  fixers 
for  aid  and  things  of  that  sort.  How  about  the  poor  learner? 
1  he  learner  wily  gets  a  low  piece  rate,  and  under  the  new  bonus 
system  he  would  collect  his  quality  bonus.  Learners  would 
get  the  full  amount  ot  the  h.>nus  on  top  .  t  the;r  earnings. 
I  hey  arc  the  people  that  we  cannot  ho'ui.  h  takes  them  two 


IO2  Man  to  Man 

or  three  years  or  may  be  four  years  to  become  expert  and  they 
get  discouraged  and  they  neglect  quality  and  become  careless 
weavers  in  order  to  get  up  to  the  quantity  bonus.  Nine 
times  out  of  ten  they  quit  and  go  to  work  at  something  else. 
Now,  under  the  proposed  system,  those  fellows  would  be 
tickled  to  death  and  it  would  tend  to  make  the  kind  of  weav- 
ers that  we  want.  We  want  men  who  feel  hurt  when  they 
see  a  piece  of  defective  goods.  They  will  not  only  feel  hurt 
in  their  feelings  but  also  in  their  pocketbooks.  If  they  see 
something  done  wrong  it  will  hurt  them  in  several  ways  and 
for  that  reason  they  will  be  more  careful. 

"There  has  always  been,  since  I  ha^e  been  here  (nearly  six 
years),  complaints  about  the  production  bonus.  Now  it  would 
be  very  hard  to  figure  just  how  much  or  to  what  extent  we 
have  suffered.  One  good  point  is  this — we  have  got  produc- 
tion by  the  production  bonus.  Now  if  we  want  to  get  quality 
let  us  offer  an  incentive.  We  wanted  production  and  we  got 
it.  We  want  quality  and  we  will  get  it." 

(Mr.  Barge):  "Mr.  Meek  doesn't  understand  the  qual- 
ity bonus  as  we  have  laid  it  out.  The  quality  bonus  will 
not  be  figured  on  a  daily  rate  but  on  the  same  piece  work 
standard  as  at  the  present  time,  but  instead  of  paying  a  bonus 
for  production  we  will  pay  it  for  quality.  Every  string  we 
take  out  in  any  operation  tends  to  make  the  customers  more 
satisfied — it  makes  the  goods  easier  to  sell — tends  to  make 
our  reputation  better  with  the  trade.  This  bonus  is  not 
only  for  quality  but  for  perfect  quality.  If  all  the  strings  but 
three  were  taken  out  of  a  piece  the  company  would  not  get 
any  more  for  the  piece  but  they  would  get  repeat  orders." 

(Mr.  Regan):  "I  would  like  to  say  this  to  the  people  who 
may  not  very  thoroughly  understand  it — the  quality  bonus 
will  not  hurt  the  good  weaver  because  no  matter  which  sys- 
tem he  is  under  he  will  get  quality,  so  he  is  entitled  to  the 
bonus  anyway.  The  poor  learner  has  to  strive,  too,  and  he 
can't  get  it,  so  he  will  spoil  the  goods  by  trying  to  get  the  pro- 


Iiuliistri.il    Dcmounty  103 

tluctmn  bonu»  and  !u-  \'.<>n't  j,*rt  the  <|t!ahty  ami  the  result  will 
be  tint  he  will  cither  'get  t!if".:;;h'  <»,-  trv  firnrthing  cl-.c. 
We  l«»st  many  xvcavers  thi*  wjy  and  we  d»n't  wjnt  t'»  repeat 
the  error.  1  he  j;o«>d  \\r.i\rr  will  iir\<t  !•<  e  anything  it  n 
money  just  tile  same  whether  he  ^' ts  it  by  the  production 
bonus  »r  the  quality  bonus  and  the  b-urner  v •  :!'  r  greatly 
bcnchtcd." 

Ilcic  aie  the  facts  and  figures  <>f  the  nuny  inJucernenti 
that  a  nun  h.is  f.>r  ilomj;  l».al  wt>;L  .iiul  t!u  \ery  few  that  arc 
olfered  to  him  fur  p>oj  wurl.. 

l\lr.  Krgan):  "  1  he  only  clung  I  would  hLc  to  say  is  this. 
That  at  the  !.i-.t  meeting  when  we  J:scu:.'.ed  the  bonus  system 
1  made  a  statement  that  a  weaver  \ve.r.  :n^  under  t!  <  |  le.nit 
bonus  system,  it  he  loses  one  or  more  li-uiis  f>r  torrei  :.n.;  mis- 
takes he  is  losing  h.i-.  yardage  rate  .i:ul  h:s  bonus,  m  l..^t,  be 
loses  uvue  1:1  bonus  t.-.an  til  Varda/.e  late.  A  staternent 
was  made  tliat  t!u.  was  ru't  s>).  I  promised  to  brinj;  in  f^cts 
aiul  figure  i.  I  ba\e  them  l:rr<-. 

"On  .;'.iality  tiie  standard  tune  per  unit  is  .6 ,:;  hours.  It 
re  (litres  17 .;/  b,uii>  to  make  :$  yards  and  be  100',  tthcicnt. 
Losing  one  hour  on  a  cut  for  OTrcctuiK  mistakes,  tl.s.  v.  eaver 
reduces  Ins  ellkieiKy  from  loo' ,'  t>>  V4  <  •  !''>  r.ite  per  yard 
on  that  <;uahty  is  > .:;S  making  a  total  of  js/'i  4:  t  T  :>  \.ir^! ••.. 
i'or  1  >/  ,'  prodiK'tive  etliaencv  we  pay  :o' ,  l«i-ir.ts.  v.i..J; 
would  make  ,<!.:;  on  h.s  cut.  I  or  </  \'  [  produrtis  c  i  ':.i  .< -P.,  y 
w-e  pay  I  i'  ,'  bonus  wiuvh  makes  i^cv  on  bis  c;:t  o:  ;  .  U  --. 
in  bonus  a  Kino  than  he  would  have  received  f«r  I  _•  ;\  -1  *c- 
tion  etHcieiuv,  rmt  countm:;  the  >7c  he  is  !.-,:n^  0:1  !  -  yarJ- 
n:;c  rate  t""r  t!i.it  h mr.  In  other  w.-rds,  M  h  IO-..-N  t!;..t  hour 
f  >r  correctm.1,  misf.iki  .  under  str.n.;!it  piece  u.uk.  h:-  i  -  .r.sj 
:7c.  If  l;e  is  Ki.sin;;  it  under  the  prr-.,.-nt  s\  :.-:i  ol  bo:u:s 
paying,  ho  is  losing  ;~c  and  ;  ,c  which  make-.  7' c.  I  hat  is 
the  pnn.-ipal  re.is->:i  why  he  v.  .n't  C'»rre>.t  t;,  .e  iristakes 
under  t:u  ptosent  system  <>t  paying  bonus.  He  did  'lot 
correct  thuse  mistakes  under  the  Hat  Lite  system  either, 


104'  Man  to  Man 

because  for  the  yardage  rate  he  would  lose  by  doing  so.  Give 
him  the  bonus  for  good  cloth,  make  it  big  enough  to  pay  him 
for  at  least  four  hours  of  his  time  on  a  cut,  and  you  will  get 
better  cloth,  because  the  bonus  will  more  than  pay  him  for 
the  time  lost  for  correcting  his  mistakes." 

(Mr.  Deering) :  "I  had  a  case  the  other  day.  A  100%  man 
brought  in  a  pretty  bad  piece.  I  wanted  to  know  why  he 
did  not  make  a  good  piece.  He  said  'I  cannot  make  a  good 
piece  and  100%  at  the  same  time.  I  could  not  do  it.  If  I 
do  not  make  100%,  I  lose  $3  a  week/  I  asked  him  if  he  could 
make  a  good  piece  and  promised  that  if  he  did  he  would  get 
1 00%.  The  next  piece  was  perfect.  He  corrected  all  the 
mistakes.  The  piece  before  that  had  about  20  strings." 

Mr.  Shine  asked  Mr.  Deering  what  the  man's  efficiency  was 
on  the  second  cut. 

Mr.  Deering  said  that  it  was  under  100%. 

(Mr.  Pearsall):  "I  have  a  few  facts.  I  examined  a  piece 
the  other  day,  employee  No.  423,  a  100%  man,  who  has  been 
working  here  for  nine  years.  The  piece  had  fifteen  defects 
and  of  ten  kinds — an  imperfect  piece.  I  spoke  to  him  in  a 
nice  way.  He  gave  me  the  same  excuse  as  other  weavers — 
'If  I  wanted  to  be  a  100%  man  I  could  not  pick  that  out.' 
There  is  another  employee,  No.  466.  His  piece  had  sixteen 
defects  of  seven  kinds.  Both  of  the  weavers  are  of  the  same 
type.  The  only  excuse  they  gave  for  the  imperfections  was 
that  they  were  after  the  production  bonus. 

"I  had  another  case,  employee  No.  482;  I  looked  up  his 
efficiency.  He  averages  90%.  I  looked  up  his  cuts  for  the 
past  two  weeks.  The  pieces  are  perfect.  I  said  to  him, 
'You  are  doing  fine.  How  much  are  you  earning?'  He  said, 
'I  do  not  make  enough.'  I  asked  him  if  he  were  a  100%  man 
and  he  said  he  was  not,  that  he  averaged  90%.  He  said  'If 
you  want  to  make  fine  pieces,  the  way  these  look,  it  is  impos- 
sible to  make  100%,  figuring  on  an  average.'  The  man  is 
earning  $16.65  a  week.  Can  we  afford  to  lose  such  a  man? 


Industrial   Democracy  105 

He  i«  not  satisfied  with  Ins  present  earning,  judging  from 
rrtnjrks  lie  lui  made.  Can  we  afford  to  Io-.c  SIA!I  a  nun, 
break  in  a  nr\v  one,  uke  chances  with  the  nr-.v  t<t\c  until  he 
is  up  fi»  thr  standard,  spend  another  .<;<•>•)  or  ,<;'x;  on  hjrn 
until  h<-  IN  in  our  employ  a  year  or  so  as  a  \<!.<t  v,<a\rr' 
If  \vr  paid  this  weaver  2O*  ^  "'I  (JliahtV  lie  w.i-.iKl  avrra;;r  fjir 
wages  about  ,<:  o  weekly.  Can  we  afford  to  let  tin,  r.i.m  KO 
atul  hreaL  in  a  new  nun'  \\  c  will  ru-\cr  reach  M:»V«  ,,  M  we 
contiri'ir  t!iat  way.  I  make  a  motion  that  we  accept  t!.'-  re- 
port as  read  at  the  meeting." 

1  hey  went  on  t<>  cjuote  other  cases.  'I  hey  told  of  one  \\ea\  er 
\V!KI  left  heratise  he  could  not  make  enough  money.  I  le  could 
not  operate  above  an  So'"'  efficiency  without  neglect  inq  ijinhty. 
lU-mg  a  \ery  mnNCientious  man  (exactly  the  .sort  of  an  em- 
ployee that  f\crv  employer  wants),  he  refused  to  r.ish  for 
loor\'  by  slighting  his  work— but  he  had  to  pay  for  his  care 
by  taking  lower  wages.  It  was  stated  that  this  :i',.in  would 
have  made  30'",'  more  than  he  did  make  and,  because  of 
quality,  would  have  been  profitable  to  the  company  on  a  Inmus 
given  for  careful  weaving  as  opposed  to  the  bonus  for  "regard- 
less" production. 

The  representatives  had  several  other  like  cases. 

Did  the  quality  bonus  work?  IK- re  is  what  the 
Senate  heard  after  a  few  weeks  of  operation:— 

(Mr.  Pearsall):  "I  believe  it  is  rather  early  and  very  diffi- 
cult besides  to  show  exact  figures  or  concrete  facts  as  to  how 
the  present  quality  bonus  works,  but  judging  from  the  reports 
of  the  different  examiners  ami  foremen,  and  mv  own  personal 
experience,  I  must  state  that  the  goods  ha\e  improved  a  lot. 
I  called  on  the  man  who  examines  the  goods  when  it  comes 
from  the  loom,  and  he  stated  that  the  £<**.!•>  are  coining  much 
better  and  are  improving  each  day.  I  a!.-»  called  on  Mr. 


io6  Man  to  Man 

Hoson  who  has  charge  of  the  Narrow  Goods,  and  he  also 
stated  the  goods  had  improved  considerably.  In  an  inter- 
view on  May  I7th  about  the  5O-inch  goods,  he  said  it  was 
remarkable.  He  made  the  remark  that  they  examined  300 
cuts  on  the  i6th  of  May  and  not  one  piece  of  seconds  were 
in  the  lot  and  only  a  few  "R"  (rejected)  goods.  This 
must  be  so  for  I  had  the  pleasure  of  having  Mr.  Brager  ask 
me  on  seven  occasions:  'What  change  did  you  make  in  the 
weave  room?  I  get  no  more  fleeced  goods.  Nearly  every 
cut  is  Lapinex.'  I  don't  know  whether  or  not  Mr.  Brager 
wants  to  take  the  responsibility  of  last  year's  improvement, 
but  nevertheless  I  can  state  from  my  own  experience  that  the 
Quality  Bonus  has  something  to  do  with  the  improvement  of 
the  goods.  In  my  daily  inspection  of  the  weave  room,  after 
the  installation  of  the  quality  bonus,  I  was  stopped  several 
times  by  weavers  and  asked  if  the  goods  were  all  right — 
they  would  show  the  goods  to  me.  I  asked  the  weavers  what 
they  were  referring  to  and  they  replied:  'I  want  my  quality 
bonus  and  I  will  not  get  it  if  this  does  not  cut  right.'  The 
cutting  of  the  goods  means  a  whole  lot.  The  knife  and  stones 
must  be  watched  continually  on  account  of  the  dust  of  the 
material  and  the  dirt  from  some  of  the  dyestuffs,  and  the 
assistance  of  the  weaver  is  required.  In  the  first  two  weeks 
I  had  quite  some  difficulty  with  some  of  the  better  weavers 
who  were  still  under  the  impression  that  a  few  imperfections 
would  leave  them  in  Class  i  and  allow  them  to  collect  a  20% 
bonus.  They  were  put  in  Class  3  and  collected  only  10% 
bonus.  They  improved  on  the  next  cut  and  collected  15%. 
Some  wanted  to  know  what  was  required  to  be  in  Class  I 
and  I  told  them  there  must  not  be  one  single  imperfection 
in  the  piece.  I  can  prove  that  they  tried  to  get  it. 

"The  transferring  of  weavers  is  also  a  great  deal  improved 
as  now  a  weaver  cannot  lose  what  he  has  already  made. 
This  was  not  the  case  heretofore. 

"  The  -production  has  not  suffered  through  the  Quality  Bonus. 


Industrial    Democracy  107 

The  average  production  for  April  amounted  to: 
April     i  st     wrcl.     10:'  i 


"       ;.-!       "       14, 
"       4th       "        101 

"  I  hat  i:.  a  pretty  go«>d  avera:;r  f»r  t!ic  first  month  of  t!ic 
quality  K»»nus." 

"Mr.  I  iallagher  sai-1  lie  had  hern  t.i!Li:i~  to  an  av.rt.mt  <>f 
Mr.  Mi  nrr  aiui  asLrJ  his  opinion  about  the  com!-,  lotninj; 
through.  I  he  assistant  saiJ  that  it  was-  wonderful  t!.c  wjy 
the  go»xls  were  coining  at  the  present  time." 

How  did  it  come  about  that  the  workers  them- 
selves went  so  far  toward  the  solution  of  this  pi  r- 
plexing  problem  of  bettering  the  quality  of  pro- 
duction? Simply  because  Industrial  Democracy 
taught  them  the  principles  of  an  all-around  square 
deal  and  put  the  enforcing  of  that  square  deal  up  to 
them.  The  problem  ceased  to  belong  to  the  cor- 
poration and  became  the  property  of  the  people 
themselves. 

Eliminating  "seconds"  was  only  part  of  the 
work  which  they  did  and  are  still  doing.  The} 
Went  after  "seconds"  because  they  were  wasteful; 
they  went  alter  other  wastes  in  a  like  thorough 
fashion.  Here  are  some  extracts  from  the  report 
of  the  Committee  on  the  Conservation  of  Supplies: 

It  has  been  brought  to  the  attention  of  the  Conservation 
of  Supplies  Committee  that  a  large  amount  of  good  paper 
is  destroyed  or  spoilt  in  our  Weaving  Department  and  the 


io8  Man  to  Man 

following  recommendations  are  put  before  the  Senate  for  dis- 
cussion and  for  action  to  be  taken. 

(1)  (a)     That  the  Warping  Department  when  wrapping 
covering  paper  around  the  warps,  mark  the  paper  on  each  warp 
with  an  arrow,  the  arrow  to  point  and  show  the  direction  of 
the  material  on  that  warp.     This  will  enable  the  parties  who 
are  putting  the  warp  into  the  loom  to  know,  without  tearing 
the  paper  to  obtain  this  information,  how  to  place  the  warp 
and  the  direction  the  material  runs. 

(b)That  an  arrow  be  painted  upon  the  flanges,  the  direction  of 
this  arrow  to  be  always  noted  and  taken  care  of  by  the  foreman 
of  the  Warping  Department  when  starting  to  make  a  new  warp. 

There  seems  to  be  quite  a  difference  of  opinion  as  to  which 
is  the  best  and  most  convenient  method.  We  consider  the 
subject  should  be  discussed  in  the  Senate,  then  a  bill  put 
through  for  the  method  decided  upon.  Under  present  con- 
ditions there  is  a  lot  of  paper  spoilt  through  those  putting  in 
warps  tearing  the  paper  so  that  they  can  see  the  material 
and  the  direction  in  which  it  runs.  Either  of  the  above 
methods  should  eliminate  this  practice. 

(2)  That  there  is  a  lot  of  paper  wasted  through  it  being 
allowed  to  lie  around  on  the  various  looms  where  it  is  placed 
after  being  taken  off  the  warps.     It  is  considered  that  either 
the  men  taking  it  off  the  warps  should  deliver  it  back  im- 
mediately to  the  Warping  Department  or  that  the  foreman 
twister  have  a  boy  to  make  trips  once  or  twice  a  day  through 
the  weave  sheds  for  the  particular  purpose  of  carefully  picking 
up  all  paper  from  off  and  around  the  looms  and  turning  same 
into  the  Warping  Department. 

We  are  of  the  opinion  that  the  foregoing  should  be  read  out 
to  both  houses  and  all  members  should  strongly  cooperate  in 
their  endeavors  to  stop  the  waste  of  this  paper,  and  also  to 
bring  to  the  personal  attention  of  any  member  of  this  com- 
mittee all  matters  where  they  consider  that  our  supplies  are 
being  misused  or  wasted. 


Industrial   Democracy 

Take  stationers  ami  blank  forms  which  cost  £900 
to  £1,000  a  month.  I  lie  committee  suggested  that 
the  accounting  department  furnish  each  foreman 
with  a  statement  of  the  amount  of  stationery  us» 
c>vii  a  period  of  time  so  that  they  could  check 
up  on  each  item.  They  further  recommended 
that  no  forms  should  he  independently  issued, 
Imt  that  all  should  come  to  a  central  control;  that 
if  a  new  form  were  desired  it  should  not  he  prmtrd 
until  its  absolute  necessity  was  established  and 
the  other  forms  of  the  company  were  investigated 
to  make  certain  that  none  of  those  in  stock  could 
be  used.  They  found  that  the  manila  paper 
bought  for  the  packing  and  shipping  department 
was  used  in  various  departments  of  the  mill  where 
cheaper  grades  would  answer  the  purpose  quite  as 
well.  They  posted  the  sign: 

"SAVING  WASTE  INCREASES  PAY." 

And  there  you  see  the  economy  dividend  at 
work — it  hitched  up  saving  waste  with  pay. 
They  got  that  idea  very  quickly;  they  made 
money  tor  themselves  and  for  the  company. 
Look  at  this  joint  resolution: 

BE  IT  ENACTED  AND  Ki  SOLVED  Tn\r: 

I.  A  blackboard  be  placed  in  each  department,  or  upon 


no  Man  to  Man 

each  floor  where  a  department  exceeds  one  floor,  throughout 
the  mill. 

2.  A  committee  be  formed  consisting  of  members  of  the 
House  of  Representatives  and  Senate  in  each  respective  de- 
partment, or  on  each   respective  floor,  for  the  purpose  of 
originating  and  writing  on  the  blackboard  —  three  days  prior 
to  the  date  of  dividend  payment  —  a  message  on  dividends  to 
the  employees  of  the  said  department  or  floor. 

3.  The  Dividend  Committee  shall  receive  and   pass  upon 
all  messages  to  be  placed  on  the  blackboards  in  the  different 
departments  so  that  all  messages  will  keep  within  the  busi- 
ness policy  of  this  concern. 

4.  The  department  of  floor  committees  will  also  be  notified 
of  the  percentage  of  dividend  to  be  paid,  and  each  week  this 
will  be  entered  at  the  same  time  that  the  message  is. 

5.  A  blackboard  as  per  the  attached  design  shall  be  adopted 
for  the  purpose  of  entering  the  message  on  dividends  to  the 
people. 

6.  The  messages  to  be  written  on  the  blackboards  in  English 


This  is  by  no  means  the  whole  record  of  Indus- 
trial Democracy  in  the  Shelton  Looms  —  it  is  a  very 
small  part  of  the  record,  but  it  gives  the  oppor- 
tunity to  hear  the  testimony  of  the  people  them- 
selves on  some  points  which  are  troubling  most 
manufacturers  —  whether  or  not  they  are  in  textiles. 

Industrial  Democracy  not  only  found  that  lost 
half  million  but  it  is  finding  countless  other  thou- 
sands which  will,  within  a  few  years,  mount  into 
the  millions. 


CHAPTER  VI 

Mt'ST    A    FOREMAN    III:    A    IMT.IUST? 

AIX)/.KN  miles  out  from  Cleveland,  Ohio,  is  a 
sleeps ,  dust-covered  little  town  which  serins 
to  hnd  its  excuse  for  existence  in  being  a  butt  for  the 
big  city.  Whenever  a  traveling  comedian  wants 
to  work  in  a  local  joke  of  a  peculiarly  rustic  nature, 
he  habitates  it  there.  One  has  only  to  start, 
"I  was  over  in  Blank  yesterday  .  .  ."  and  the 
audience  begins  to  laugh. 

Formerly  a  single-track  trolley  line  wended  its 
way  through  its  straggling  main  ami  only  street 
and  furnished  a  link  between  the  inhabitants  and 
the  effeter  civilization  in  the  city.  Hut  the  town 
has  a  college  and  the  college  had  a  professor  of 
economics  and  he  delved  into  the  proper  relations 
of  transportation  companies  and  communities. 
His  researches  convinced  him  that  the  trolley 
company  was  not  serving  the  public  as  well  as  a 
perfectly  ordered  franchise  holder  should.  'I  hen 
he  convinced  the  town  fathers  of  the  enormity  of 
permitting  a  soulless  corporation  to  act  so  brazenly. 


H2  Man  to  Man 

Thereupon  he  drew  up  and  they  adopted  an  elabo- 
rate schedule  of  the  cars  the  company  should 
run,  when  they  should  leave,  and  when  they  should 
arrive,  providing  adequate  penalties  for  non- 
performance,  and  generally  introducing  the  most 
modern,  academic  methods  of  transportation  reg- 
ulation. The  only  flaw  in  the  plan  was  the 
trolley  company.  Its  officers  and  directors  read 
the  new  edicts  with  the  utmost  care,  said  that 
they  were  perfectly  splendid,  and  if  carried  out  in 
the  spirit  as  well  as  in  the  letter,  the  town  denizens 
might  fare  forth  into  the  world  with  regularity 
and  dispatch.  Modestly  they  confessed  to  an 
incapacity  to  manoeuvre  in  such  an  ideal  atmos- 
phere, but  asserted  they  would  not,  in  the  slightest 
degree,  interfere  in  the  communication  scheme. 
They  would  efface  themselves.  Thereupon  they 
packed  up  their  tracks  and  their  cars  and  headed 
for  some  less  progressive  community,  cheerfully 
offering  to  give  the  franchise,  which  the  professoi 
of  economics  had  evaluated  so  highly,  to  any  one 
who  hankered  after  a  franchise. 

Thereafter  the  townese  made  connection  with 
the  United  States  over  a  storage  battery  car  on  a 
spur  line.  That  is,  they  made  connections  if  the 
weather  were  all  right,  the  conductor  and  motor- 


Industrial   Democracy  113 

man  both  feeling  well,  and  the  car  in  working 
order;  it  is  only  fair  to  say  that  oner  in  a  while  all 
of  these  happy  conditions  did  concatenate. 

More  than  half  a  century  before,  long  before 
trolley  cars  had  been  dreamed  of,  came  to  the  town 
a  big,  hard-fisted  blacksmith.  He  was  a  fore- 
handed smith  and  his  forge  had  not  breri  working 
many  months  before  he  discovered  that  his  cus- 
tomers could  use  a  certain  amount  of  castings  to 
replace  broken  parts  for  which  they  would  other- 
wise have  to  send  afar. 

He  sit  up  a  little  foundry  which  made  such  good 
gray  iron  castings  of  the  lighter  weights  that  others 
than  the  neighbors  sought  to  buy  them.  And 
soon  he  forgot  about  his  blacksmith  siiop  and 
gave  himself  up  to  the  foundry.  He  was  an 
iron  master  in  every  sense  of  the  word;  he  was  the 
master  and  he  ruled.  Those  who  work  about  iron 
are  not  a  gentle  lot;  they  run  to  red  tlannel  under- 
shirts ami  belligerent  dispositions;  they  give  ami 
they  take  and  they  have  no  respect  for  a  boss 
who  cannot,  it  the  occasion  rises,  roundly  thrash 
any  one  of  them.  The  old  master  could  do  it 
and  his  son,  following  after  him,  ably  maintained 
the  martial  supremacy  of  the  family. 

It  is  tins  son  with  wh<>m  we  are  concerned,  a;ul 


H4  Man  to  Man 

at  the  time  with  which  we  are  concerned  he  was 
president  of  the  company,  stood  two  inches  over  six 
feet,  owned  240  odd  pounds  of  brawn,  a  million  dol- 
lars or  so,  a  sunny,  even  disposition,  and,  although 
nearly  sixty  years  old,  had  an  equally  hearty  wallop 
and  handshake.  He,  too,  had  a  son,  also  in  the  busi- 
ness, and  also  entirely  able  to  take  care  of  himself. 
There  were  no  pacifists  in  that  management;  they 
did  not  know  what  a  "nonresistant"  was.  All  the 
foremen  were  "huskies"  and  thus  they  ruled  some 
300  Poles,  Lithuanians,  Hungarians,  Italians,  and 
Negroes  in  a  comparative  peace  and  quiet,  because 
any  one  who  wanted  "to  start  anything"  could 
find  far  safer  places  than  this  particular  foundry. 
Everybody  was  reasonably  happy,  the  castings 
came  through,  and  although  laboring  men  did  not 
like  to  work  in  such  a  dead,  far-away  town,  the  state 
was  so  glutted  with  immigrants  that  it  was  always 
possible  to  find  plenty  of  men. 

The  foundry  could  shut  down  on  any  day,  pay 
off  the  labor,  and  after  a  month  or  so  of  idleness, 
be  absolutely  certain  to  recruit  a  full  force  simply 
by  hanging  out  a  sign.  The  men  received  the 
market  price  for  their  services  and  were  fairly 
treated.  It  was  a  good,  average,  thriving,  foun- 
dry business  conducted  on  good,  average,  thriving 


Industrial   Democracy  115 

foundry  business  lines.  They  did  not  try  any 
fool  experiments;  they  knew  what  they  were 
doing;  they  were  able  to  get  their  share  of  work 
and  they  made  money.  The  president  and  his 
son  both  had  statewide  reputations  for  absolute 
fairness  and  integrity.  They  were  respected  by 
their  employees  and  by  the  community.  They 
were  the  big  people  of  the  town.  They  had  that 
patron-saint  position  of  the  manufacturer  from 
whose  activities  flows  the  prosperity  of  the  neigh- 
borhood. 

Then  came  what  I  think  we  shall  some  day  call 
the  Industrial  Revolution  of  1916.  The  war 
orders  of  the  Allies  brought  a  feverish  activity  into 
the  state.  People  began  to  talk  about  labor  short- 
age; labor  took  up  the  cry,  and,  turning  back  the 
law  of  supply  and  demand  upon  their  employers, 
the  labor  market  became  a  first-class  imitation  of 
the  Chicago  wheat  pit  with  a  speculator  frying  to 
effect  a  corner.  The  laboring  man  revelled  in 
a  new  independence.  Having  a  do/en  jobs  to 
select  from  any  day  in  the  week,  he  lost  all  tear 
of  discharge.  He  grew  careless,  worked  only 
when  he  felt  like  it,  and  enjoyed  his  inning  to  the 
utmost. 

The    management    of    the    foundry    could    not 


u6  Man  to  Man 

understand  the  new  order  of  things.  Like  most 
employers  they  tried  to  face  the  new  facts — but 
they  could  not  realize  that  world  conditions  had 
changed,  that  old  methods  would  not  do  in  a  day 
of  rising  living  costs,  restricted  labor  supply,  and 
intense  demands  for  more  and  more  production. 
The  president  tried  out  various  bonus  systems 
of  production;  he  looked  into  efficiency  methods, 
and,  although  every  method  he  tried  was  in  itself 
good,  all  of  them  neglected  the  factor  which  had 
undergone  the  greatest  change — the  human  factor. 
All  the  methods  presumed  that  money  incentives 
would  bring  men  up  to  capacity.  In  that  they 
reckoned  wrongly.  The  workers  were  interested 
in  money  but  they  were  making  more  money  than 
they  had  ever  seen  before.  They  found  employers 
bidding  for  them  on  every  side  and  they  trans- 
ferred any  interest  which  they  might  have  had  in 
the  work  to  seeing  that  the  employers  kept  right 
on  bidding.  At  the  end  of  a  day  they  thought  to 
themselves  not,  "How  much  did  I  do  today," 
but  "How  much  shall  I  ask  for  tomorrow?" 
The  care  was  not  to  earn  but  to  get  wages. 

The  president,  his  son  and  the  foremen  railed. 
But  what  was  the  use?  The  men,  when  too 
much  bossed,  simply  took  up  their  coats  and  went 


Industrial   Democracy  117 

on  to  the  next  job.  Ross  rule  the  rule  of  the 
hard  fist  and  the  strong  arm  ended. 

All  the  while,  the  company  was  being  deluged 
with  orders.  I  hi  v  could  not  keep  up,  though 
running  on  full  toice,  with  ev«-n  subnormal  pre- 
war production,  while  on  thru  hooks  were  three 
times  as  great  a  quantity  of  orders  as  had  ever  he-en 
there.  Among  them  were  rush  orders  for  the 
United  States  Government. 

The  president  resolved  that,  since  labor  seenu-d 
to  want  more  and  more  money,  he  would  go  tin- 
limit  on  wages.  1  he  company  contracts  were  lib- 
eral enough  to  give  a  profit  even  at  high  wagis 
provided  only  they  were  filled  within  a  reasonable 
time.  lie  raised  all  wages  a  flat  IC/"t.  He  de- 
termined to  buy  production.  But  at  the  end  of 
that  month  the  summary  of  operations  disclosed 
the  startling  fact  that  production  had  fallen  of!" 
lorl  and  that  the  labor  turnover  for  the  month 
hail  nor  decreased.  Perhaps  the  increase  in  wages 
had  not  been  large  enough.  'I  he  president  added 
another  10'  [. 

''Now,"  he  declared,  ''I  have  given  them  all 
the  wages  they  can  think  of  asking  for.  They 
are  getting  double  what  they  got  two  years  ago 
and  I  ought  to  get  a  little  action  out  of  them." 


Ii8  Man  to  Man 

He  posted  the  new  voluntary  increase;  the  men 
took  it  calmly.  They  expected  monthly  raises 
and  figured  to  themselves  that  the  company  was 
not  entitled  to  any  particular  credit  but  was  only 
buying  at  the  market  price  for  labor  just  as  it 
bought  pig  iron  at  the  market. 

The  production  in  the  second  month  made  a 
new  low  record  for  the  full  force  working — another 
straight  10%  drop. 

The  increases  in  wages  had  been  to  date  a  flat 
failure  but  the  president  did  not  realize  that  the 
workers  wanted  anything  more  than  money. 
And  he  was  right  in  a  way — it  was  wages  they 
thought  they  wanted.  Really,  they  did  not  know 
what  they  were  after.  A  few  long  heads  may 
have  seen  that  there  had  to  be  a  limit  to  wages; 
that  if  wages  kept  going  up  so  would  the  prices 
of  the  finished  article  until  they  reached  a  point 
where  no  one  could  buy — and  then  there  would 
be  neither  work  nor  wages. 

The  president  tried  again;  he  put  on  another 
10%,  making  a  total  increase  of  30%  within  three 
months — a  procedure  which  caused  him  and  his 
fellow  executives  to  wonder  where  in  the  world 
business  had  started  for  and  to  hope  that  the  end 
might  come  quickly.  This  third  10%  increase 


Industrial   Democracy  u<) 

pave  no  better  results  than  tin-  previous  ones. 
Production  made  another  IK  w  low  record  and  if 
the  labor  turnover  hail  been  any  faster  they  would 
have  had  to  employ  a  traffic  policeman  to  prevent 
those  going  out  from  getting  into  tin  way  of  those 
coming  in. 

1  hen  and  there  the  executives  went  into  solemn, 
almost  sepulchral,  session.  They  mournfully  de- 
cided that  they  had  reached  the  end  of  their  rope, 
that  they  did  not  know  anything  about  business 
cavorting  as  it  was  then.  Bur  they  could  not 
shut  up  shop;  they  could  not  completely  fall  down 
on  the  Government  contracts;  they  were  far  be- 
hind in  deliveries— but  they  had  to  go  on.  Mow1 
could  they  continue  with  a  shop  that  was  out  of 
control,  with  costs  going  higher  every  day,  and 
with  production  both  in  quantity  and  in  quality 
sliding  so  rapidly  down  the  scale  that  their  only 
hope  was,  when  it  did  hit  zero,  it  would  have  suf- 
ficient force  to  rebound.  Ilu-y  were  willing  to 
try  anything.  They  had  tried  everything  and 
everything  had  failed. 

It  was  then  that  they  heard  of  Industrial  De- 
mocracy and  into  the  swilling  chaos  I  took.  In- 
dustrial Democracy. 

I  had  the  men  meet  with  the  officers    and    di- 


I2O  Man  to  Man 

rectors  and  we  talked  over  things.  I  told  them  that 
riding  on  a  merry-go-round  was  fun  for  a  while, 
but  it  wasn't  the  kind  of  thing  that  any  one  found 
pleasant  day  in  and  day  out.  That  they  them- 
selves were  probably  becoming  tired  of  following 
the  call  of  high  wages  from  place  to  place;  that 
if  they  struck  a  balance  they  might  find  that  the 
expense  of  shifting  and  the  discomforts  of  new 
quarters  every  few  weeks  were  costing  them  more 
than  the  additional  money  they  were  continually 
asking  and  obtaining. 

They  agreed  with  me  that  running  from  job  to 
job  was  a  nuisance,  that  they  felt  that  they  were 
not  getting  anywhere.  But  what  was  a  man 
going  to  do?  It  cost  so  much  to  live  that  even 
at  the  highest  wrages,  precious  little  stuck  for 
a  rainy  day.  I  did  not  blame  them  for  selling 
their  services  to  the  highest  bidder — -that  \vas 
only  natural  and  right.  When  there  were  more 
men  than  jobs,  precious  few  employers  had  ever 
paid  or  could  ever  pay  other  than  the  lowest  wage 
which  would  fill  the  shop.  They  were  competing 
in  the  outside  market  in  the  price  of  goods  and 
they  thought  they  had  to  compete  in  the  inside  of 
the  shop  with  the  price  of  labor. 

"But,"  I  went  on,  "we  can  all  find  a  better  way 


Iiulustri.il   Democracy  i~i 

than  this.  \\  r  can  all  make  motr  money  the 
company  as  well  as  yourself  h\  g<  -mug  n>«»ic  <  ui 
of  the  ilay,  by  ceasing  to  w»ik  as  individuals  and 
all  working  together.  ^  ou  have  pi obably  heard  a 
great  deal  ahout  working  togtthci  tot  rhc  i«m- 
pany's  benefit  but  have  \  <m  i-\  i  i  thought  of  making 
a  team  out  of  \  ourselves  for  your  own  hinefit : 

I  he  crowd  hLtil  thr  idea  •>!  self-government. 
Still  more  t!u  y  liked  the  idea  of  getting  a  di\  id<  IH! 
on  their  wages  calculated  on  tlu  u  o\sn  sa\  m;rs  ami 
efficiencies.  1  hey  liked  tlu-  thought  <«f  M»ir  <i 
going  into  Inisiiuss  for  themselves,  «f  huildir.g  an 
institution  ot  tlu-ir  own,  ami  ot  dropping  out  <  f 
the  mad  and  titesome  chase  f<»i  the  alluring  jot 
of  wages  at  the  end  of  the  rainbow. 

I  hese  rough  men  were  ituliir.entary.  Like 
most  strong,  uneducated  male  amm;ls  tlu\  had 
simple,  single- track  minds  winch  respondi  il  (jinckly 
to  the  elemental  things  of  life.  'I  lu\  l>i;;:m  \\ith 
the  ardor  i>f  children  starting  a  mw  g;u;ie. 

A  few  could  not  shake  oil  the  old  "hold-up" 
spirit.  '1  hey  saw  in  the  IH  \v  older  of  thiv.ps  a 
chance  to  "fake."  Six  nun  working  at  a  4]  cent 
piece  rate  waited  upon  the  superintendent;  they 
insisted  on  a  raise  to  six  cents;  otherwise  they 
would  quit.  Answered  the  superintendent: 


122  Man  to  Man 

"This  is  out  of  my  hands  now.  If  your  rate* 
are  not  right  tell  your  representatives  about  them 
and1  the  House  of  Representatives  will  appoint  a 
committee  to  see  that  you  get  what  is  coming  to 
you." 

The  kickers  did  not  like  that  idea.  Complained 
their  leader: 

"What  does  the  House  of  Representatives 
know  about  this?  We  know  what  our  rates  are, 
what  our  work  is,  and  how  much  we  ought  to  get 
for  it." 

The  superintendent  absolutely  refused  to  exceed 
his  authority.  The  dissatisfied  men  would  not 
appeal  so  the  superintendent  himself  explained  the 
situation  to  the  Speaker  of  the  House  who  at  once 
convened  a  session  and  appointed  an  investigating 
committee.  This  committee  examined  the  work 
and  the  men.  They  brought  in  a  finding  that  the 
six  cent  rate  had  not  been  asked  for  in  order  to 
bring  up  wages  but  that  the  kickers  had  calcu- 
lated that  at  six  cents  they  could  do  less  work  than 
before  and  earn  the  same  total  amount  of  money. 
Thus  the  increase  would  retard  and  not  stimulate 
production.  The  men  were  caught  at  their  own 
game.  They  were  caught  trying  to  hoodwink 
their  fellows. 


Industrial   Democracy  123 

Strangely  enough  the-  protestors  did  not  quit 
when  the  adverse  verdict  was  handed  down.  In- 
stead they  went  really  to  work,  exerted  themselves, 
ami  earned  high  wages. 

1  he  quantity  and  quality  of  the  production  of 
the  whole  foundry  began  to  incieasr  with  the  very 
first  month's  operations.  The  dividend  for  the 
first  thirty  days  was  (/  ,'  and  at  the  end  of  three 
months,  the  workers  had  increased  it  to  ior,'. 
They  did  this  by  working  together.  '1  hi  v  found 
that  dividends  came  from  following  the  principles 
of  the  Business  Policy  they  had  adopted  —that 
the  policy  was  not  a  mete  collection  of  words,  hut 
a  living  thing,  to  which  tiny  might  turn  tor  advice 
at  any  hour  ot  the  day.  1  he  men  her. an  to  know 
and  interest  themselves  in  one  another. 

"Jimmy  is  sick,"  announced  a  ripusuitativc 
ar  a  House  meeting.  "He  is  a  good  fellow  ami  he 
isn't  earning  anything.  He  has  a  big  family  and 
he  hasn't  had  a  chance  to  lay  \crv  much  hy. 
Let's  take  up  a  collection  and  send  him  some 
money." 

Another  member  thought  that  ir  would  not  be 
right  to  rake  up  a  collection  Kcai^c  then  Jimmy 
might  ieel  that  he  was  getting  ch;:i:t\  and  anyhow 
any  workman  who  tell  sick  should  have  an  equal 


124  Man  to  Man 

chance  and  it  might  be  that  when  an  unpopular 
man  was  in  a  bad  way  nobody  would  "chip  in" 
for  him. 

Out  of  this  discussion  grew  a  mutual  benefit 
association.  The  company  had  looked  after  its 
men  when  they  were  ill  but  they  could  not  know 
all  of  them  and  the  workers  themselves — that  is 
the  setter  class — did  not  like  the  idea  of  receiving 
charity.  They  wanted  to  stand  on  their  own  feet. 
The  House  committee  took  actuarial  advice  and 
worked  out  a  plan  to  provide  in  advance  for  any 
trouble  that  might  come  to  any  man — including 
both  health  and  life  insurance  in  the  scheme. 
They  devised  a  schedule  of  deductions  from  the 
dividends  and  absolutely  forbade  the  taking  up  of 
a  public  subscription  for  a  worker.  Any  one  on 
the  pay  roll  might  elect  the  sort  of  insurance  that 
he  fancied.  For  i%  off  his  dividend  check  he 
might  have  insurance  equal  to  his  annual  earnings. 
Thus  they  accomplished  insurance  without  cutting 
in  on  the  pay  envelopes — which  always  comes 
hard  to  a  workman.  And  they  were  the  happier 
for  doing  the  insuring  themselves. 

The  making  of  castings  is  a  tricky  b  usiness.  The 
mold  must  not  only  be  well  made,  but  the  gate 
through  which  the  molten  iron  enters  has  to  be 


Iiulustri.il   Democracy  i "  S 

just  the  right  si/e  and  shape  or  the  iron  v.ill  flow 
in  too  slowly  or  too  last  and  cause  an  imp!  itect 
casting;  the  man  pouting  must  regulate  the  speicJ 
at  which  the  iron  leaves  tin  »adle.  hut  above  all, 
the  lion  has  to  In-  "hot"  and  "miming  right. " 
Changes  in  atmosphere  aflect  the  fluidity  of  the 
iron;  it  tuns  om-  way  in  dry  weather  and  another 
in  wet.  Ins'ioit.it  lias  an  exaspcratinply  fickle 
natutr  which  IK\  cr  \  et  has  hem  tjiiite  put  undir 
control. 

The  moldcrs  weir  paid  at  piece  rates  for  peiltct 
castings  but  imperfect  ones  might  result  Irom  ;::u 
ot  siver.il  causes  not  under  tlu;i  control.  'I  he 
"cupola  man"  who  hlled  the  biL:  "bull  ladle" 
might  help  or  hinder  the  run,  or  he  might  do  1  is 
work  properly  and  the  ''pouiei"  be  caielos. 
The  cupola  tender  and  the  "pouu  is  were  on 
day  wages  and  they  had  no  incentive  to  better 
work;  their  money  came  through  regulaily, 
whether  or  not  they  did  then  best.  ^  on  can 
realize  the  possibilities  tor  disputes  under  this 
system.  I  think  that  no  chances  tor  rows  slipped 
by. 

The  molders  were  usually  cursing  the  pourers 
and  even  body  cursed  the  "cjpola  man."  NMun 
blows  threatened,  a  foreman  jumped  in.  A  halt 


126  Man  to  Man 

row  was  always  on  and  a  fair-sized  war  was  a  daily 
happening.  This  was  before  they  learned  the 
.cash  as  well  as  the  happiness  value  of  united  work. 

The  House  quickly  took  up  the  situation. 
They  began  with  the  "cupola  man."  He  was  a 
dour  individual  who  intensely  disliked  improve- 
ments. He  had  opposed  every  improvement  in 
the  past — he  was  one  of  the  few  men  who  had 
been  with  the  company  a  long  time — and  he  hated 
the  new  idea  of  community  interest.  He  made 
himself  the  first  big  barrier  to  an  improvement 
in  the  work;  he  refused  to  change  his  ways.  His 
particular  fancy  was  to  fill  one  ladle  and  then 
stop  the  flow  of  metal  at  the  cupola  while  the  next 
ladle  was  being  put  in  place.  That  choppy  meth- 
od restricted  the  whole  flow  of  production. 

The  new  idea  was  to  lead  the  metal  out  through 
a  two-pronged  trough  so  that  while  one  "bull 
ladle"  was  being  filled,  another  might  be  wheeled 
into  place  ready  at  once  for  its  quota  of  live 
metal.  Thus  a  constant  delivery  might  be 
obtained. 

Everybody  wanted  the  new  way — except  the 
" cupola  man";  he  said  he  would  quit  before  he 
changed — and  he  quit.  A  man  was  selected  from 
the  working  force  and  the  foundry  took  a  step 


Industrial   Democracy  127 

forward.  Hut  what  happened  to  the  conscientious 
objector?  I  It-  wi-nt  out  and  got  another  job 
and  inside  of  thirty  days  came  back  again  to  do 
his  old  job  in  the  new  way.  He  said  that  he  did 
not  like  to  woik  anywhere  else!  Hut  now  lie  is 
working  ti".:k  the  company. 

The  "pourers"  had  been  careless.  They  were 
not  interested  in  results  and  were  usually  at 
swords'  points  with  their  molders.  1  he  House 
got  around  this  by  resolving  to  have  tin-  molders 
select  and  control  their  own  "pourers"  so  that  it 
any  "pourer"  were  not  satisfactory,  the  molders 
through  the  House  would  have  correction  in  their 
own  hands.  I  he  molders  could  no  longer  cntici/c 
the  company  for  hit  ing  incapable  or  careless  men— 
they  had  to  look  to  themselves.  And  because  not 
only  their  pay  but  also  the  dividend  depended  upon 
turning  out  first-grade  castings  they  saw  to  it 
that  the  "pourers"  used  care.  Thus  ended  the 
pouring  troubles. 

Molding  is  something  of  a  fine  art.  There 
are  only  a  few  skilled  molders  and,  try  as  they 
might,  some  ot  the  men  could  not  produce  even 
a  reasonably  high  average  of  good  castings. 
T  hey  made  their  molds  and  gates  with  all  care 
r.nd  to  the  best  o{  their  knowledge,  but  often  good 


128  Man  to  Man 

castings  would  not  result — and  why  they  knew 
not.  This,  too,  came  before  the  House.  A 
committee  investigated  and  reported  that  the 
causes  for  most  faulty  castings  could  be  traced 
by  an  expert  in  molding  practice  and  it  would 
materially  help  quality  production  if  the  com- 
pany had  an  inspector  who  would  not  only  know 
a  bad  casting  when  he  saw  il,  but  also  why  it  was 
bad  and  who  would  be  able  to  go  back  to  the  man 
who  had  made  it  and  tell  him  the  exact  trouble. 
They  suggested  one  of  their  number — Harry. 
The  company  appointed  Harry.  And  he  set  in  to 
raise  the  casting  standing  of  the  shop.  Being 
an  expert  molder  and  a  student  of  iron,  he  could 
instantly  put  his  finger  on  the  cause  of  defective 
work.  When  a  bid  casting  came  to  him  and  he 
had  diagnosed  the  trouble,  he  went  to  the  molder 
who  had  made  it  and  explained  the  exact  nature 
of  the  defect.  It  might  be  that  the  gate  was  too 
large  or  too  small;  but  whatever  the  cause,  Harry 
found  it  and  the  men,  recognizing  that  he  knew 
what  he  was  talking  about,  were  glad  to  have  his 
advice.  When  they  were  puzzled  on  a  mold  they 
began  to  get  Harry's  approval  before  the  pouring 
began.  They  realized  that  it  helped  dividends  to 
avoid  the  waste  of  poor  castings  and  they  dropped 


Industrial   Democracy  129 

the  too  common  attiuulc  of  letting  pride  forbid 
thnn  to  ask  quefft!* us. 

These  improvements  w«  -re  all  in  tin-  direction  of 
quality  production.  1  In  y  saved  tin-  company 
mom  v  hy  cutting  out  tin-  e\p»  nsr  ot  t<j<enons  in 
tin-  foundry  and  of  rejections  by  tin-  customers. 
Also  they  made  money  for  the  wo:kt  is  because  the 
workers  received  one-lialf  c{  all  these  >avm^s  a  : 
dividends.  The  improvement  in  qualit)  u.is 
remaikahlc,  hut  wliat  is  even  ir.(/ie  remarkahle 
i >  that  the  ream  spuit  produced  n»-r  only  Inttti 
cast. .11'^  hut  more  ol  them.  I  nder  the  <>K1  silu-me 
ot  individual  work,  the  company  hud  faced  steadiK 
mcieasini;  war.e-i  and  .steadily  ckcreaMng  pio- 
duction. 

In  the  httli  month  of  the  experiment  in  silf- 
government,  t!u-  co?npan\'  had  a  net  increase  in 
production  and  shipping  ot  ;i'  ,  in  excess  of  the 
best  month  in  their  history  ! 

I  hat  is  N'vhar  team  work  did  f<>t  jV'  •  di:ction. 

The  lal>or  turno\-er,  except  id  MA!I  causes  as 
death  or  sickness,  practically  cca^  d  t«>  he.  'i  he 
waives  with  the  dividend  :_'avc  the  i  tr.p!"\  1 1  s  higher 
returns  than  were  paid  in  the  dinner  i«r  suv.ilar 
work.  But  the  companv  could  atlord  the  waives 
and  dividends  because  the  increased  elHciencv  and 


130  Man  to  Man 

the  elimination  of  wastes  scaled  down  their  unit 
costs  of  production.  They  saved  money  on  high 
wages — which  is  as  it  should  be.  Instead  of  scour- 
ing the  country  for  men,  they  had  a  waiting  list. 

The  business  of  the  company  increased  to  such 
an  extent  that,  in  spite  of  the  big  production  of 
the  force,  it  became  necessary  to  take  on  more 
men.  The  Cabinet  decided  on  this  addition  only 
after  consultation  with  the  House  of  Representa- 
tives and  the  Senate  and  a  general  agreement  of 
opinion  that  the  best  business  interests  would  be 
served  by  increasing  the  force.  But  where  could 
these  men  sleep  and  eat?  The  little  town  was 
already  crowded.  The  House  had  long  since  sug- 
gested that  the  company  build  houses  and  a  num- 
ber were  being  built,  but  they  did  not  meet  the 
immediate  need.  The  House  asked  for  a  mass 
meeting  to  consider  the  subject.  The  Speaker  of 
the  House  told  the  men  of  the  conditions.  That, 
as  they  all  knew,  the  company  should  add  to  the 
force;  there  were  no  houses  for  new  employees  and 
none  could  be  built  and  finished  within  four  or  five 
months.  Had  the  workers  any  recommendations  ? 

Suggested  a  worker,  "Let  every  man  here  who 
has  a  house  take  in  a  temporary  boarder.  I  don't 
think  any  of  us  want  boarders  just  now  when  we 


Industrial   Democracy  131 

arc  making  money  but  it  is  up  to  us  to  help  out. 
hi  very  man  in  this  room  who  will  take  in  a  boarder 
raise  his  haiul." 

Up  went  the  hands.  They  absorbed  the  thirty 
men  then  hired,  and  since  then  thi-v  have  found 
quarters  tor  many  more  men.  Thus  they  ban- 
ished the  housing  problem  from  the  little  town 
that  had  no  housing  facilities. 

I1  torn  a  wrangling,  snarling  mass,  rough  of 
speech  ami  ready  ot  rtst,  this  foundry  group  be- 
came a  band  of  cooperative1  manufacturers.  The 
men  now  like  the  plan  because  it  gives  them  the 
joy  of  creative  effort.  No  longer  does  the  money 
incentive  wholly  stimulate  them.  They  have 
learned  the  fundamental  truth  that  a  task  \\ell 
done  brings  quite  incidentally,  but  with  absolute 
surety,  its  own  proper  and  adequate  reward. 
I  hat  v.  hosoeViT  makes  his  job  the  complete  expres- 
sion ot  himself  need  no  longer  worry  about  pa\  . 

I  have  spoken  of  the  nun.  How  did  the  com- 
pany like  the  way  things  worked  out?  I  his  is 
what  the  president  had  t'>  say  the  other  dav. 
The  results  have  been: 

F  irst  —  Increased  pnuluctiiin. 

Scvorul  —  IniTiMvil  i-.it:i!Mi;s  to  the  company  a:iJ  the  men. 

ThirJ  —Pccrc.iM.-J    co.-,t. 


132  Man  to  Man 

Fourth — Better  quality. 

Fifth — A   contented   and   energetic  organization. 

Sixth — Our  business  is  more  strictly  within  our  control 
than  ever  before. 

The  manufacturer  struggling  alone  with  his  business  bur- 
dens, carrying  them  on  his  own  shoulders  only,  and  who  lias 
not  seen  the  value  of  the  interest  on  the  part  of  the  humans 
in  the  organization,  will  not  believe  such  a  change  is  possible. 
He,  however,  has  something  pleasant  to  learn. 


CHAPTER  VII 

INPTS  1KI  M.    Pi  M<K  K.U  V 

IN  II  IK  four  chapters  imnu-diare!)  prccrdini;  I 
have  pveti  accounts  of  the  working  of  Irdiis- 
tria!  Democracy  IM  vaiious  dissimilar  helds  <>t  the 
results  ot  shop  as  distinguished  iiom  Inhotaiory 
ti-sts.  My  thought  has  In  <  n  to  prtsmr  ivr 
nuTcrly  a  thfory  of  industrial  relation,  hu*  a  t!u-<>[\- 
which  has  hecii  estahhshed  and  proved  in  pnu'tir.- 
and  uiuler  vaiietl  rondirions.  A  theory  which 
piovc-s  itsc'lt  uith  American  woiknu-n  of  ratlu; 
ai>o\  r  the  average  ^i.ul,  a-.  :M:!I  th.e  Packard 
C'oinnativ  \sith  t»>n<.Ji  ti'ii-mn  i.tl^.r  as  in  tin-  i:  n 
foundry;  with  practicall)  alu-n  v. .  tkvrs  as  in  t!-.. 
case  ot  tiu'  Deinuth  I  >mpanv;  with  wea\'i-rs  '.\!i  ' 
are  notorious])  floating,  as  \M*!I  Ijlunu-n; hal  ^\ 
C'o.  can,  1  think,  s.:!<.!\  In-  t;:kv-:i  as  unr.cis.il  m 
application. 

I  p.n;;!u  have  re-red  ar  1>  a-«r  i:itein  trori- 
sroiu-s  ot  i-ijual  inte:<-.r  \\itii  tr.i^  \\!MC!I  ha\e 
he<n  uivcrutor  Iiultistnal  Dirioera.  •,  is  jvi  lop.^i-r 
an  expt  iiir.cnr.  I  ha\c  v.oiked  :'  •  >it  t!;iou.;h  a:; 


134  Man  to  Man 

experience  of  ten  years  in  many  and  varied  in- 
dustries. It  is  a  form  of  management  which  de- 
veloped with  me;  it  was  not  born  full  grown.  It 
grew  out  of  my  own  long  experience  as  a  worker 
and  has  its  genesis  in  the  late  P.  D.  Armour. 
Years  ago  our  gang  was  splashing  about  in  the 
muck  of  the  old  stockyards  when  "P.D."  came 
along  on  his  old  sorrel.  He  noticed  that  Pat  was 
wearing  a  thin  coat  and  had  leaky  boots:  he 
stopped. 

"What  are  you  doing  around  here  dressed  like 
that?"  he  asked. 

"It's  all  I  got,"  answered  Pat. 

"Go  buy  yourself  a  heavy  suit  of  clothes  and  a 
pair  of  boots  and  charge  them  to  me,"  ordered 
Armour.  "We  can't  afford  to  have  a  good  man 
like  you  get  sick." 

Armour  was  always  doing  that  sort  of  thing. 
Of  course  he  was  an  autocrat,  but  his  was  a 
benevolent  despotism.  He  paid  fair  wages 
and  demanded  long  hours  of  service  because 
he  knew  no  other  way  to  work — -that  was  the 
way  he  had  been  brought  up— it  was  the  way  he 
had  worked.  I  hold  no  brief  for  all  his  business 
practices  but  I  do  know  that  he  had  a  profound 
personal  interest  in  all  those  who  worked  for  him 


Industrial  Democracy  135 

and  that  they  returned  that  interest  by  a  remark- 
able loyalty.  That  incident  and  others  like  it 
made  an  impression  on  me.  It  started  me  to 
thinking  why  could  not  all  employers  and  employ- 
ees have  mutual  interests;  why  could  they  not 
treat  with  each  other  on  the  man-to-man  basis? 
I  kept  that  idea  with  me  through  endless  jobs. 
I  saw  employees  come  and  go,  live  ami  the,  with- 
out a  thought  on  the  part  of  the  employers  as  to 
their  welfare.  I  saw  the  employees  show  an  equal 
lack  of  interest  in  the  employers  and  demonstrate 
this  disinterestedness  by  pointedly  doing  just  as 
little  as  they  possibly  could  for  their  wages.  I 
could  find  no  relation  between  wages  and  work. 
The  employer  paid  the  lowest  wage  at  which  he 
could  get  men  and  the  worker  gave  the  smallest 
return  which  he  could  possibly  give  and  still 
get  the  highest  wages.  I  am  speaking  generally. 
I  noticed  striking  exceptions  and  I  also  noted  that 
many,  1  think  a  majority,  of  the  employers  had 
no  measure  of  wage  except  that  paid  by  a  com- 
petitor and  they  felt  that  if  they  raised  wages  and 
the  competitor  did  not  they  could  not  sell  against 
him.  'I  he  workmen  also  did  not  coniuct  wage 
with  work.  They  wanted  two  dollars  in  pay  for 
a  dollar's  worth  of  work;  they  did  not  work  any 


136  Man  to  Man 

harder  or  any  more  intelligently  for  two  dollars 
than  they  did  for  one  dollar.  In  neither  case  did 
they  put  more  than  their  hands  into  the  tasks. 

Inside  each  institution  I  found  runious  com- 
petition between  labor  and  capital — the  one  to 
get  more  the  other  to  give  less.  This  competition 
seemed  to  me  both  wrong  and  foolish  and  I  delib- 
erately went  from  job  to  job,  although  I  had  no 
income  other  than  my  wages,  merely  to  find  if 
there  was  not  some  better  way  of  adjusting  the 
relation  between  the  proprietor  and  the  worker. 
Out  of  that  first-hand  investigation,  pursued  with- 
out theories  and  without  a  knowledge  of  philos- 
ophy, came  a  gradual  comprehension  that  there 
could  be  a  better  way.  Seeking  the  why  and 
the  how  led  me  into  philosophy — into  the  causes 
behind  what  we  call  results — and  step  by  step 
unfolded  that  which  I  now  call  Industrial  De- 
mocracy. 

My  first  large  opportunity  to  try  out  my  ideas 
came  as  one  of  the  managers  of  an  envelope  plant. 
I  had  then  no  well-defined  plan  of  formal  organi- 
zation. I  tried  merely  to  come  to  good  terms  with 
the  people  who  were  working  in  the  departments 
to  make  them  feel  that  I  was  one  with  them  and 
that  their  interests  were  mv  interests.  I  was 


Industri.il   Democracy  137 

astounded  to  see  how  quickly  they  responded. 
\Ve  held  mass  meetings  from  time  to  tune  in  order 
to  try  to  pet  the  same  point  of  view  and  at  those 
mass  meetings  we  talked  over  the  management  of 
the  factory,  better  ways  of  doing  work,  and 
although  we  had  no  power  to  enforce  any  res- 
olutions we  adopted — the  executive  officers  proved 
themselves  willing  to  atlopr  most  of  our  sugges- 
tions and  seemed  to  welcome  our  cooperation 
— they  found  it  profitable.  I  hat  is  the  record 
of  my  first  trial  at  anything  approaching  demo- 
cratic shop  government.  Of  course  it  was  far 
from  actual  democracy;  ir  was  practically  only  a 
democracy  of  suggestion.  Bur  the  big  thing 
about  it  is  that  it  worked.  It  gave  a  foundation 
upon  which  to  build.  It  proved  to  me  that  my 
fundamental  ideas  were  right. 

The  men  liked  the  meetings;  they  liked  the 
chance  to  air  troubles,  to  have  it  out  over  any- 
thing which  did  not  satisfy  them;  and  gradually  it 
dawned  on  me  that  this  desire  to  talk  and  to  have 
a  say  in  things  was  the  bubbling  to  the  surface  of 
the  innate  spirit  of  democracy — of  the  desire 
which  is  in  almost  every  man  to  have  a  voice  in 
his  own  destiny  and  a  means  for  self-expression. 
And  that  the  great  change  which  had  come  about 


138  Man  to  Man 

in  their  work  was  by  reason  of  the  brain  power 
freed  through  responding  to  these  natural  urges. 
Analyzing  my  personal  work  I  found  that  what  I 
had  really  done  was  to  capitalize  fair  play — to  sell 
the  management  to  the  men,  to  convince  them 
that  their  meetings  were  of  importance  and  not 
merely  opportunities  to  blow  off  steam.  I  found 
it  difficult  to  measure  the  relative  importances  of 
the  two  phases.  The  opportunity  for  democratic 
expression  was  undoubtedly  that  which  attracted 
and  held  interest,  but  just  as  undoubtedly  that 
opportunity  would  not  have  been  seized  had  not 
the  men  been  convinced  of  its  fairness,  sincerity, 
and  mutual  good. 

That  is  entirely  reasonable;  one  finds  the  same 
thing  in  politics.  We  have  been  managing  busi- 
ness autocratically;  one  man  or  a  group  of  men 
has  commonly  had  absolute  Kaiser-power— 
power  more  absolute  within  its  sphere  than  that  of 
any  ruler  on  earth — and  if  employers  do  not,  most 
certainly  employees  do,  recognize  the  fact.  They 
are  therefore  suspicious  when  an  employer  de- 
velops overnight  a  zeal  for  democratic  control.  I 
do  not  care  what  plan  you  attempt  to  put  in  force, 
and  I  do  not  care  how  sincere  may  be  your  desires, 
the  workers  will  question  whatever  you  give  to 


Industrial  Democracy  139 

them.  They  will  quickly  pick,  any  patent  Haws 
or  limitations  and  if  they  cannot  tuul  such  they 
\vill  not  thereupon  conclude  that  you  intend  to 
he  fair.  On  the  contrary,  they  will  ask  "Where 
is  the  joker?"  I  hey  expect  a  joker.  \\lu-n  the 
1  s.u  granted  the  Duma  to  Russians  only  a  few 
ol  the  people  accepted  ir  as  a  step  toward  iK  i.ioc- 
racy,  the  others  wanted  to  he  shown  the  "joker.*1 
And,  Mire  enough,  in  due  turn-,  they  found  not 
only  one,  init  halt"  a  do/en  jokers. 

Bearing  in  mind  this  wholly  natural  mental 
state  I  have  gone  forward  with  Industrial  Democ- 
racy, holding  two  propositions  as  fundamental: 

(/)    A  ]<'Tin  of  di-tnncracy  should  If  adopted  •:;  /;  :Y/i 
permits  thf  most  direct  possible  act:  on  l>y  the  :: '  jric-rs 
tktmsfkfs  and  practically  without  rigid  I  in: '.'.a'.:  •?:  <•{ 
its  txtfi:!.      In  such   casf  probaHv    r.o   '/•<•'-• 
jurisdiction  'til!  c-ccr  arise.      If  yo.v  c' >  jl.\-  /:"::'.'. 
ij  you  erect  a  jfnce  around  the  dm:' 
natural  human  instinct  is  in  j p. -•;:.;'  77;   . .'  <  •'  :!:r  ::^:r 
If aningotfr  that fencf  trying  t)  i;.-;  int-j  :':••  n ' \ .'/;'.-;./. 

(2)  Sc\l  the  plan  t  >  '.he-  ttr.p'o^  ^^'•'-•'-'•'  '•'•?n: 
cf  \'<i:ir  s:ncfr:'.\'.  ' 

I  have  spoken  of  Industrial  Democracy  as  a  >ratc 
o*  mind.  In  its  broadest  sense  it  is  a  state  of 


140  Man  to  Man 

mind.  As  far  as  this  present  book  is  concerned  I 
am  considering  it  only  in  a  limited  application — 
as  a  method  of  management  of  a  factory  or  some 
other  specific  commercial  entity — and  not  broadly 
as  a  mode  of  national  government.  I  am  taking 
as  settled  without  argument  that  American  prin- 
ciples of  democracy  are  right  and  then  making 
application  of  these  principles  to  the  governing  of 
a  factory.  My  thought  is  that  if  we  manage  our 
smaller,  more  intimate  affairs  on  right  principles 
then,  as  a  matter  of  course,  we  shall  manage  our 
great,  national  affairs  on  right  principles. 

This,  then,  is  what  I  call  Industrial  Democracy: 

The  organization  of  any  factory  or  other  business 
institution  into  a  little  democratic  state,  with  a  rep- 
resentative government  which  shall  have  both  its 
legislative  and  executive  phases. 

The  democracy  which  I  favor  and  which  I  have 
proved  in  practice  takes  its  titular  organization 
from  our  own  Federal  Government  and  also  fol- 
lows its  modes  of  procedure.  It  necessarily  dif- 
fers in  detail.  The  formal  organization  depends 
upon  the  size  of  the  company.  In  a  large  insti- 
tution one  would  require  a  Cabinet,  a  Senate,  and 
a  House  of  Representatives  supplemented  by  mass 


Industri.il   Democracy  141 

meetings  of  the  entire  working  force  as  occasion 
requires.  In  u  very  small  place  (employing  jOO 
or  less)  it  may  nor  he  necessary  ro  elect  represen- 
tatives at  all  and  the  ma-.s  meeting  may,  in  town 
meeting  st\  le,  he  able  tot  r.msacr  all  of :  he  business 
subject  to  the  confirmation  <>f  a  Cabinet.  Take  the 
three  divisions,  their  derivations  and  their  powers. 

Tin:  CAKIM:T 

'I  he  Cahmet  con  ists  ot  the  executive  officers 
of  the  company  with  the  president  of  the  company 
acting  as  its  chairman.  I  ins  body  is  not  elective 
by  the  workers  and  its  personnel  exists  by  virtue 
of  the  vote  of  the  corporation  through  its  st-K'k- 
holders  or  directors  according  as  the  by-laws  <>!  the 
corporation  may  prescribe.  I  do  not  think  it 
would  make  tor  democracy  to  have  the  Cabinet 
elective  and  I  have  nowhere  heard  :ha:  is  1:1  tins 
country — workers  ask  that  it  should  be. 

I  he  Cabinet  is  pnmaHv  an  e\i-cu:i\v  body. 
It  has  the  power  to  veto  hut  I  have  never  known 
that  power  to  be  exercised.  Ir  a!>o  ha,  the  power 
to  initiate  legislation  ui  the  same  manner  as  the 
President  of  the  United  States  -that  is,  hv  making 
a  suggestion  in  a  message  to  the  Senate  or  House 
of  Representatives.  Neither  the  Senate  nor  the 


142  Man  to  Man 

House  is  obliged  to  follow  these  suggestions. 
But,  as  in  the  case  of  our  own  Government,  each 
practically  always  does  adopt  the  suggestions,  al- 
though frequently  with  additions.  Thus  the  exe- 
cutive officers,  instead  of  issuing  orders  to  em- 
ployees, become  a  part  of  the  democratic  control 
and  are  fully  in  touch  with  the  people  and  their 
needs  as  expressed  through  the  Senate  and  House* 
The  Cabinet  meetings  have  before  them  not  only 
the  bills  which  have  been  passed  by  the  Senate  and 
the  House,  but  also  the  minutes  of  all  the  meet- 
ings and  the  discussions.  The  extracts  from  the 
minutes  which  have  been  given  in  the  preceding 
chapters  show  how  free  and  informal  is  the  debate 
— thus  the  executives  know  what  the  people  are 
thinking  about  by  reading  what  they  say  in  their 
discussions.  All  communications  in  the  Senate 
and  House  are  privileged  and  no  employee  may 
be  punished  for  anything  that  he  may  say  in 
meeting.  In  fact,  he  should  not  even  be  cautioned 
or  criticized,  for  to  limit  the  right  of  free  speech 
in  the  Senate,  in  the  House,Sor  in  a  mass  meeting 
would  be  to  make  an  absurdity  out  of  democracy. 
And  the  inevitable  self-criticism  by  the  bodies 
themselves  is  more  efficacious.  The  Cabinet 
meets  once  a  week,  discusses  the  specific  bills, 


Industrial   Democracy  14; 

which  come  up  for  approval,  any  communications 
or  joint  resolutions,  and  also  deals  with  tin-  larger 
problems  of  management  which  would  naturally 
come  before  a  meeting  of  executives.  If  they 
decide  a  change  to  be  desirable,  they  do  not,  as 
would  ordinarily  be  the  case,  simply  frame  an 
order  and  promulgate  it  for  better  or  for  worse; 
instead  they  put  the  order  into  the  form  of  a  sug- 
gestion, or  recommendation,  give  the  reasons  be- 
hind their  action,  and  send  it  to  the  Senate  or 
House.  1  he  exact  measure  will  be  adopted  or  re- 
jected as  these  bodies'  see  fit,  but  in  any  event  it 
is  sure  of  a  full  ami  complete  discussion  from 
even,  possible  angle  and  the  object  will  be  at- 
tained. It  the  measure  be  rejected,  the  execu- 
tives may  rest  assured  that  they  have  been  piv- 
vented  from  issuing  an  erroneous  order  and  saved 
from  the  results  of  a  mistaken  snap  judgment.  Pu- 
ventmg  unwise  orders  by  the  management  would 
be  of  itself  a  sufficient  reason  for  the  existence  <>t  a 
form  ot  democratic  government. 

THK    Sl.NXTK 

1  he  Senate  also  is  not  an  elective  body.  It  is 
made  up  ot  the  under-cxecutives,  department 
heads,  and  sub-foremen,  according  to  the  si/e  ot 


144  Man  to  Man 

the  establishment,  the  idea  being  that  its  members 
shall  comprehend  all  of  those  under  the  grade  of 
chief  executive  officers  who  are  in  a  position  of 
authority  over  the  workers  themselves.  It  elects 
a  president,  a  secretary,  and  such  other  officers  as 
may  be  necessary.  It  has  standing  committees 
and  special  committees  just  as  has  the  Senate  of 
the  United  States,  and  it  is  an  extremely  valuable 
body  in  that  it  represents  the  supervision  point  of 
view.  It  approaches  measures  from  the  stand- 
point  of  the  man  who  must  put  them  into  effect, 
Its  powers  and  practices  are  identical  with  those 
of  the  House  of  Representatives  which  are  given 
in  the  next  section. 

THE    HOUSE    OF   REPRESENTATIVES 

The  House  of  Representatives  is  the  popular 
body  of  government,  being  elected  by  secret  ballot 
by  the  whole  body  of  workers.  The  exact  mode  of 
election  depends  upon  the  size  and  the  character 
of  the  institution.  I  find  that  it  is  commonly 
best  to  have  the  elections  by  departments  with  a 
representative  for  each  twenty  to  forty  people 
employed  within  the  department.  The  depart- 
mental basis  is  advisable  because  then  every 
phase  of  the  business  is  assured  of  a  proportion- 


Industrial   Democracy  145 

ate  voice,  which  might  i<>t  he  the  case  were  all 
the  representatives  elected  at  large.  The  repre- 
sentatives are  also  supposed  to  act  as  counselors 
within  their  departments,  to  receive  all  complaints 
and  suggestions  from  their  constituents,  and  also 
to  acquaint  them  with  what  the  legislative  bodies 
are  doing. 

The  Speaker  of  the  House  is  elected  and  he 
appoints  the  committees.  His  right-hand  man 
is  tl-.e  Chairman  of  the  Ways  and  Means  Com- 
mittee, which  is  the  committee  of  paramount 
importance.  Both  the  Senate  and  the  House  are 
governed  in  their  proceedings  by  Robert's  Rules 
of  Order  and  both,  in  addition,  adopt  constitutions 
ami  by-laws.  Meetings  of  the  Senate  and  House 
are  weekly  and  always  on  company  tune,  piece 
workers  being  paid  an  approximation  of  what 
they  would  have  made  had  they  been  working. 
The  system  will  fail  miserably  if  the  meetings  are 
held  after  hours  or  otherwise  in  the  employee's 
time. 

Business  is  transacted  to  a  considerable  degree 
through  committees.  Kach  measure  is,  as  a  rule, 
referred  to  a  committee  to  investigate  and  report 
so  that  when  the  time  conns  for  open  discussion 
all  available  facts  will  be  in  hand.  1  his  tends  to 


146  Man  to  Man 

shut  off  irrelevant  discussion  and  keeps  the  meet- 
ings from  wandering  from  their  subject  matter. 

THE  POWERS  OF  THE  HOUSE  AND  SENATE 

Every  measure  before  becoming  a  law  must 
pass  both  the  Senate  and  the  House  and  be  ap- 
proved by  the  Cabinet.  When  the  Senate  and 
the  House  cannot  agree  on  the  terms  of  a  bill,  a 
conference  committee  is  appointed  to  iron  out 
the  differences  and  present  a  compromise  measure. 
Every  dispute,  whether  between  workmen,  a 
workman  and  a  foreman  or  executive,  between 
foremen,  or  between  a  foreman  and  an  executive 
may  come  before  either  the  Senate  or  the  House. 
Usually  a  committee  is  appointed.  This  com- 
mittee will  take  testimony,  find  according  to  the 
facts,  and  report  back  their  findings.  The  House 
may  accept  or  reject  their  findings.  If  it  accepts 
them  it  passes  a  measure  to  correct  the  trouble 
which  may  involve  only  a  change  in  method, 
or  may  bring  in  a  recommendation  for  the  dis- 
missal or  shifting  of  one  of  the  parties.  The  bill 
then  goes  to  the  Senate  and,  if  it  concurs,  passes 
to  the  Cabinet  for  final  approval.  If  the  facts 
surrounding  the  passage  of  the  measure  are  not 
clear  to  the  Cabinet  they  will  call  for  more  infor- 


industrial   Democracy  147 

mation  and  may  suggest  changes;  the  wise  Cabinet 
will  not  use  a  c!ul>. 

This  wide  latitude  of  expression  makes  the  House 
and  the  Senate  important  cooperative  factors 
of  management.  If  any  men  think  that  their 
wages  01  rates  are  unjust  they  have  hut  to  bring 
the  matter  before  the  House  of  Representatives 
and  it  will  receive  a  thorough  and  impartial  inves- 
tigation by  a  committee  of  their  peers.  Thus 
the  legislative  bodies  practically  adjust  wages  and  I 
have  yet  to  know  a  case  in  any  of  the  establish- 
ments where  Industrial  Democracy  is  in  force, 
that  an  increase  in  wages  passed  by  both  the 
Senate  and  the  House  has  not  been  willingly  con- 
firmed by  the  Cabinet.  Particularly  do  thev 
ferret  out  injustices  in  piece  rates.  Very  few 
piece  rates  are  scientifically  set.  In  the  same 
department  the  same  amount  of  effort  and  skill 
may  net  ,^i  or  >2  according  to  the  vagaries  of  tin- 
rate.  Men  hesitate  to  complain  to  foremen  be- 
cause more  often  than  not  the  foremen  have 
hxed  the  rates.  I  he  men  know  jusr  rates  and 
through  their  House  of  Representatives  they 
see  to  it  that  rates  are  made  just.  Permitting 
the  men  to  have  a  say  in  adjusting  their  wages 
removes  the  perplexing  wage  question  as  a  fer- 


148  Man  to  Man 

tile  field  of  dispute.  Of  course  they  will  not  agree 
to  low  wages,  but  no  manufacturer  desires  low 
wages.  If  he  is  big  enough  to  stay  in  business, 
he  must  know  that  low  wages  spell  high  cost  pro- 
duction and  output  of  poor  quality.  Only  the 
fool  thinks  that  low  wages  save  money.  Hours 
of  labor  are  on  a  similar  footing  and  similarly  are 
best  left  to  joint  determination. 

Employers  fear  giving  power  to  employees 
through  a  democratic  organization,  but  that  is 
because  they  have  never  tried  them  with  power. 
It  is  true  that  unions  will  sometimes  increase  wages 
and  shorten  hours  to  such  a  degree  that  a  plant 
owner  thinks  he  cannot  accept  the  terms  without 
ruin.  But  there  is  a  big  difference  between  a 
union  meeting  and  a  shop  meeting.  The  union 
is  probably  antagonistic  to  the  employer  for  some 
reason — good  or  otherwise.  But  the  shop  meet- 
ing, if  the  employer  has  convinced  it  of  his  desire 
to  be  fair,  will  not  be  unfair.  The  men  who  will 
vote  regardless  of  whether  or  not  they  are  killing 
someone's  else  goose  will  not  vote  to  kill  their 
own  goose. 

Through  the  machinery  of  democracy  it  is 
perfectly  possible  for  the  employees  and  the  em- 
ployer to  reach  a  common  ground  and  to  begin  to 


Industrial   Democracy 

know  each  other.  It  is  haul  to  have  serious  mis- 
understandings  if  there  is  a  wide  opportunity  to 
exchange  views  ami  appreciate  viewpoints  and 
that  is  precisely  what  the  machinery  of  Industrial 
Democracy  affords. 

"i in:   IU:SINI-:SS  policy 

Hut  the  machinery  of  democracy  will  not,  of 
itself,  bring  about  the  understanding.  It  is  oniv 
a  machine,  and,  like  every  other  machine,  ir  needs 
power  to  turn  the  wheels.  That  power  comes 
from  the  adoption  of  a  bu—jiess  policy,  a  constitu- 
tion, a  bill  ot  rights,  or  whatever  one  may  choose 
to  call  it.  '1  he  Constitution  of  the  L'nited  States 
finds  its  reason  for  being  in  the  Preamble  in  which 
our  forefathers  stated  in  a  very  few  words  not 
merely  why  we  should  have  a  Constitution,  but 
why  we  should  have  a  Lmted  States.  The  Pie- 
amble  defines  the  common  object  what  the 
machinery  described  in  the  Constitution  is  ex- 
pected to  do.  Similarly  an  industrial  democ- 
racy needs  a  statement  of  principle,  a  summary  ot 
its  reasons  for  beiivj,  and  the  e\pivsMi>n  ot  t In- 
spirit which  animates  it.  As  a  precedent  to  the 
installation  of  the  actual  machinery  1  always 
establish  with  both  employer  and  employee 


150  Man  to  Man 

a  set  of  simple,  elementary  principles  which  I  call 
the  Business  Policy. 

In  Chapter  III  concerning  the  Packard  Com- 
pany I  have  set  forth  the  Business  Policy  in  full. 
It  is  universal  and  invariable  and  in  it  will  be  found 
a  rule  to  meet  any  situation  whatsoever.  It 
might  all  be  expressed  by  a  mere  statement  of  the 
Golden  Rule  and  I  would  so  express  it,  had  not 
the  Golden  Rule  joined  that  class  of  indisputably 
good  axioms  which  everybody  agrees  with  and 
nobody  follows.  Therefore  I  have  split  the  Gol- 
den Rule  into  five  parts  as  follows: — Justice, 
Economy,  Energy,  Cooperation,  and  Service. 
I  invariably  discuss  each  division  of  this  busi- 
ness policy  at  a  separate  meeting  and  thus  fix 
the  attention  of  the  people  on  the  basic  principles 
of  fairness. 

The  preliminary  meetings  to  discuss  and  to 
adopt  these  platitudinous  principles  are  highly 
important — they  open  the  campaign  of  selling  the 
SQUARE  DEAL — to  carry  out  the  principles  of 
the  business  policy. 

Justice,  Economy,  Energy,  Cooperation,  and 
Service  have  nothing  of  novelty — they  are 
basic.  I  simply  aim  to  renew  truths  which  are 
fundamental  but  which  have  become  rusty 


iiulustri.il   Democracy  151 

through  disuse.  I  convince  not  merely  the 
workers,  hut  every  person  in  interest  including  tht- 
difectors,  if  the  business  happens  to  be  in  corporate 
form. 

It  is  a  mistake,  in  policy  as  well  as  in  fact,  to 
assume  that  lahor  difficulties  originate  exclusively 
with  the  workers.  It  is  not  fair  to  assume  that 
all  workers  are  constitutionally  shiftless  and  care- 
less and  that  all  employers  are  paragons  of  virtue. 
Neither  is  it  fair  to  assume  the  reverse.  I  have 
not  yet  found  a  case  in  which  both  parties  were 
not  more  or  less  equally  to  blame.  Most  employ- 
ers and  most  employees  will  resent  this  statement 
and  aver  that  their  intentions  are  of  the  best.  I 
cheerfully  prant  that  most  people  have  pood 
intentions  and  I  am  willing  to  let  it  po  at  that. 
The  point  is  that  the  most  splendid  intentions  will 
not,  of  themselves,  accomplish  anything.  \\  hat 
we  need  is  something  to  put  pood  intentions  into 
effect,  to  make  them  active  and  not  passive,  and 
above  all  to  make  sure  that  they  are  practical 
and  not  merely  comfortable  points  of  view.  '1  he 
business  policy  is  intended  to  take  all  of  the  inten- 
tions out  ot  the  abstractly  pood  class  and  pool 
them  into  a  sinple  working  intention.  I  hat  is 
the  reason  it  is  absolutely  necessary  for  every 


152  Man  to  Man 

person  in  the  corporation  to  attend  the  pre- 
liminary policy  meetings  and  there  and  then  to 
pledge  the  same  intentions. 

Tacking  up  a  set  of  moral  principles  is  very  dif- 
ferent from  discussing  and  adopting  these  prin- 
ciples in  a  united  group.  When  the  worker  sees 
the  employer  pledging  with  him  to  do  justice  or  to 
perform  service  he  is  more  ready  to  believe  that 
nothing  is  being  "put  over"  on  him. 

There  is  no  possibility  of  success  in  practising 
Industrial  Democracy  without  a  common  desire 
on  the  part  of  everyone  to  follow  its  principles. 
If  the  high  officers  of  a  corporation  imagine  that 
they  can  turn  over  the  whole  question  to  someone 
else  and  go  on  their  several  ways  without  a  thought 
as  to  whether  or  not  their  people  believe  in  them 
or  the  plant,  or  are  at  least  open  minded  toward  it, 
the  experiment  is  sure  to  fail.  Personally  I  will 
not  undertake  to  instil  the  principles  and  to  start 
the  machine  going  unless  I  am  entirely  convinced 
that  the  management  is  sincerely  anxious  to  bring 
about  better  understanding  with  the  employees 
and  willing  to  do  its  part  to  attain  that  under- 
standing. I  will  not  accept  a  retainer  merely  to 
bring  about  better  labor  conditions;  I  will  not  act 
as  an  ambassador  from  the  management  to  the 


Industrial  Democracy  153 

men,  nor  undertake  anything  which  would  fall 
into  the  class  of  "personnel  manager."  For  if 
the  managers  do  not  show  as  keen  an  interest 
in  carrying  forward  the  principles  of  Industrial 
Democracy  as  they  in  turn  expect  from  the  men, 
if  they  expect  merely  to  install  a  system  and  Ret 
rid  of  the  personal  bother  once  and  for  all,  they 
have  not  the  attitude  which  makes  success  even 
remotely  possible. 

These  human  factors  are  of  the  highest  import- 
ance. Before  going  forward  with  Industrial  De- 
mocracy it  is  well  for  an  executive  clearly  to  get 
in  mind  what  manufacturing  really  is  and  to  de- 
termine the  relative  importance  of  men,  money, 
merchandise,  and  buildings.  I  hold  that  the 
human  asset  is  the  largest.  Ill-will  is  not  a  lia- 
bility, but  a  positive  loss,  and  when  it  culminates 
in  a  strike  it  is  seen  in  its  true  light.  'Hie  exe- 
cutive's object,  if  he  is  something  more  than  a 
machine,  is  to  put  good-will  in  the  place  of  ill-will ; 
it  is  up  to  him  to  manufacture  that  condition  of 
mind  which  we  call  good-will,  just  as  much  as  it  is 
up  to  him  to  manufacture  any  other  finished  prod- 
uct jout  of  the  raw  material  that  he  buys.  Hie 
finished  product  to  be  saleable  must  be  good, 
and  I  take  it  as  an  axiom  that  without  good-will 


154  Man  to  Man 

within  the  works  one  cannot  have  good-will  out- 
side the  works. 

I  hold  to  these  three  propositions: 

(/)  In  proportion  to  the  harmony  in  the  organi- 
zation so  is  the  profit  in  the  product.  When  you  have 
the  people,  75%  of  the  business  battle  is  won. 

(2)  Manufacturing  consists  primarily  in  mak- 
ing men — they  will  attend  to  the  product. 

(j)  The  making  of  men  involves  the  developing 
of  the  brain  service  of  the  whole  human  element  and 
then  concentrating  this  force  along  a  specific  line  of 
action  and  toward  a  definite  goal. 

The  object  of  Industrial  Democracy  is  to  gain 
a  collective  human  interest.  It  is  perfectly  pos- 
sible to  gain  it.  So  easily  possible  indeed  that  I 
look  forward  to  a  time  when  bankers  will  examine 
the  human  asset  before  they  check  the  statement 
of  condition — when  no  appraisal  of  a  corporation 
will  be  complete  unless  it  contains  a  history  of 
that  corporation's  relation  with  workers.  I  take 
it  that  we  will  come  to  regard  the  now  familiar 
phrase  "not  responsible  for  strikes,  lock-outs,  or 
other  delays  beyond  our  control"  as  a  confession 
of  an  inability  to  deal  with  the  biggest  asset  of 


Inilustri.il   Democracy  15; 

business,  When  a  man  sta'es  as  a  fact  tiiat  he 
considers  strikes  and  lock-outs  as  beyond  his  con- 
trol, lu-  infercntJally  states  that  he  does  not  know 
how  to  do  business— that  he  simply  is  throwing  up 
his  hands  and  passing  the  solution  of  the  human 
equation  to  luck. 

For  business  today  is  not  the  business  of  our 
forefathers;  it  is  no  longer  individual;  the  hand 
craftsman  has  disappeared  in  all  but  a  few  trades; 
we  do  business  collectively;  no  one  man  makes  all 
of  anything.  The  workman  has  lost  his  former 
individuality  ami  has  become  part  of  a  great  manu- 
facturing machine.  Before  the  division  of  labor 
and  application  of  power  (which  we  call  the  indus- 
trial revolution)  any  man  in  almost  any  line  might 
set  up  for  himself  with  his  bag  of  tools.  But  now 
he  needs  more  than  a  bag  of  tools.  lie  needs 
machinery — he  needs  capital.  Even  the  smallest 
enterprise,  for  instance  a  tiny  machine  shop,  repre- 
sents a  greater  investment  than  the  average  worker 
can  lay  by  during  a  normal  working  lifetime. 
Capital,  too,  has  undergone  a  change.  Years 
ago  a  rich  man  was  one  who  had  broad  acres  and 
tenants.  Today  he  is  the  man  who  holds  the 
bonds  or  shares  of  an  industrial  adventure.  His 
industrial  adventure  requires  workers.  His  capi- 


156  Man  to  Man 

tal,  if  not  used,  does  not  remain  inert;  it  actually 
depreciates  by  a  kind  of  erosion.  The  capitalist 
today  is  as  helpless  without  the  worker  as  is  the 
worker  without  the  capitalist. 

Capital  and  labor  are  not  alike.  They  travel 
the  same  road  only  up  to  the  division  of  profits; 
there  the  road  forks  and  we  do  not  yet  know  just 
how  the  profits  may  reasonably  be  divided.  We 
do  not  know  how  much  labor  should  have  and 
how  much  capital  should  have — certainly  neither 
should  have  all  the  profit,  for  then  the  other  must 
starve  and  die.  Perhaps  it  has  required  the  Rus- 
sian revolution  to  teach  this  lesson  to  the  unthink- 
ing. There  the  workers  thought  to  take  all  the 
profit  of  industry.  Consequently  capital  has 
died  and  there  is  no  industry.  The  interests  are 
not  identical,  but  they  are  complementary  and  in 
many  aspects  so  nearly  identical,  that,  with  some 
reservations,  they  can  be  considered  as  identical. 
This  identity  unfortunately  has  only  begun  to  be 
accepted.  There  is  a  feeling  that  capital  may  con- 
quer labor  or  labor  may  conquer  capital  and  that 
the  victor  will  not  perish  in  his  triumph.  But  if  we 
clear  our  vision  we  cannot  fail  to  see  that  modern 
business  is  not  a  question  of  a  man  or  men  repre- 
senting capital,  hiring  another  group  representing 


Industrial  Democracy  157 

labor  to  work  for  them  and  make  their  capital 
productive.  Business  is  more  than  that.  It  has 
passed  into  the  institution  stage  and  its  success 
depends  upon  the  full  cooperation  of  all  members 
—that  is,  depends  upon  the  acceptance  of  a  com* 
inon  policy  and  a  mutual  aim. 

Yet  we  continue  to  compete.  Old-fashioned 
owners  expect  people  to  work  for  thfm.  Working 
Jor  spells  competition;  working  :cith  is  cooperation. 
It  is  to  attain  this  'forking  with  that  my  Business 
Policy  was  formulated. 

THE    PAYMENT    OF   THE    WORKERS 

I  have  given  the  basis  and  the  mechanical  work- 
ings of  Industrial  Democracy,  but  I  have  touched 
very  lightly  upon  the  subject  of  wages — of  the 
remuneration  which  should  accompany  a 
square  d<al  policy.  I  have  reserved  wages  until 
toward  the  end  because  they  arc  distinctly 
secondary  to  the  broad  principles  of  fair  dealing. 
They  are  incidental  in  a  way;  they  are  a  detail 
and  not  a  foundation.  A  proper  industrial  rela- 
tion cannot  be  achieved  upon  a  merely  financial 
understanding.  You  can  hire  men  but  you  can- 
not hire  brains — you  cannot  hire  heart  interest. 
Business  and  interest  make  for  industrial  happi- 


158  Man  to  Man 

ness.  One  often  hears  employers  say,  as  though 
they  should  receive  congratulations,  "I  pay  the 
market  price  for  labor.'* 

Mere  hands  have  a  market  price;  hands  and 
brains  have  none.  I  think  that  this  has  been  con- 
clusively demonstrated  by  the  increases  in  the 
wages  granted  or  compelled  during  the  war 
period.  Paying  higher  prices  for  labor  has  not 
brought  efficiency.  Of  course,  considered  from 
the  bread  standpoint,  many  of  the  wages  have  not 
actually  been  raised;  they  have  merely  been 
adjusted  to  the  shifting  purchasing  power  of 
money.  But  in  many  other  cases  from  the  bread 
standpoint,  they  have  gone  up.  There  are  quite 
a  number  of  instances  where  the  sums  now  paid 
have  a  20%  to  30%  increase  in  purchasing  power 
over  the  highest  wages  previously  paid.  But 
has  production  then  also  increased  in  proportion? 

Wages  are  low  or  high  according  to  the  produc- 
tion that  they  cause.  A  wage  of  $10  a  day  is 
cheaper  than  a  $5  if  the  $10  man  turns  out  $10 
worth  of  production  and  the  $5  man  produces 
only  $4.  We  have  found  that  production  has 
not  improved  with  wage  increases  and  especially 
that  increases  gained  through  compulsion,  force, 
or  violence  have  been  reflected  in  a  constantly 


Iiulustri.il  Democracy  I  ><> 

lowering  quality  ami  volume  of  production  and 
also  that  in  thr  highest  paid  institutions  the  rate 
of  turnover  of  labor  is  Abnormally  high.  A 
worker  will  no  more  perform  at  his  lust  solely 
for  money  than  will  any  other  human  being  and, 
therefore,  1  am  at  variance  with  all  modes  of 
management  wlml^Voncentrate  upon  the  pay 
rather  than  upon  the  human  interest. 

Take  the  familiar  case  of  the  production  bonus. 
\\  e  put  a  premium  upon  the  amount  of  produc- 
tion rather  than  on  the  grade;  we  do  not  inculcate 
the  habit  of  good  work  but  transfer  the  operative's 
attention  from  the  quality  to  the  quantity.  For 
a  time  he  will  undoubtedly  produce  in  quantity 
by  "speeding  up,"  but  because  we,  in  effect, 
penali/.e  him  for  care,  he  must  go  forward  with 
an  "anything  goes"  attitude.  There  is  no  question 
in  my  mind  that  the  losses  thus  incident  to  detec- 
tive goods  overcome  the  apparently  increased 
efficiency. 

The  aim  of  the  workman  should  be  to  produce 
first-class  articles  and  he  will  produce  them  if  he 
has  a  pride  and  an  interest  in  his  work.  But  he 
cannot  have  that  pride  and  interest  it  his  output 
represents  only  dollars  for  quantity. 

The  underlying  principle  of  Industrial   Dcmoc- 


160  Man  to  Man 

racy  is  the  square^deal.  Starting  with  a  desire 
to  be  fair  makes  fixing  wages  a  very  easy  matter. 
The  men  themselves.,  through  the  machinery  of 
democracy,  will  come  to  a  consideration  of  their 
own  wages  with  precisely  the  same  method  of  ap- 
proach they  would  have  were  they  paying  those 
wages  to  someone  else  and  not  to  themselves. 
I  do  not  advise  abolishing  all  wage  scales  with 
the  introduction  of  democracy.  To  abolish  all 
existing  rates  and  to  say  to  the  workers  "Now 
go  to  it.  Fix  your  own,"  would  only  be  invit- 
ing chaos.  My  course  is  simply  to  let  the  wages 
stand  and  trust  to  the  people  themselves  to  bring 
up  increases  or  adjustments  as  the  case  may  re- 
quire. They  will  do  this  fairly.  I  have  had  a 
very  large  number  of  instances  in  which  a  lower- 
ing of  rates  has  voluntarily  been  asked,  because 
under  improved  conditions  the  men  were  getting 
more  for  their  work  than  they  thought  their 
services  was  worth.  And  yet  I  do  not  doubt  that 
those  very  same  men  would  have  started  a  riot 
if  the  management  had  arbitrarily  lowered  the 
rates!  The  representative  plan  of  Industrial 
Democracy  will  attend  to  wages  more  fairly  than 
is  possible  for  any  member  of  the  management, 
but  with  this  one  provision — there  must  needs  be 


Industrial  Democracy  161 

some  payment  on  top  oj  wagts  tuhich  tvill  ftprtstnt 
in  monry  iki  interest  and  If  tiff  work. 

PROFIT   SHARING 

The  added  payment,  at  first  impression,  would 
seem  naturally  to  take  the  form  of  a  share  in  the 
profits  and  there  are  many  who  advocate  profit 
sharing  without  stock  ownership  as  a  way  of  bring- 
ing  about  a  very  desirable  partnership  between  em- 
ployer and  employee.  There  are  also  those  who 
think  that  helping  employees  to  buy  stock  will 
put  them  into  a  community  of  ownership  with  the 
corporation. 

Stock  purchasing  is  to  me  aside  from  the  ques- 
tion. I  think  that  it  is  highly  desirable  that 
employees  should  own  stock  and  I  am  in  favor 
without  reservation  of  practically  all  efforts  in  the 
way  of  inducing  employees  to  purchase  stock 
and  of  making  their  payments  easy  for  them. 
The  immediate  difficulty  is  that  the  average  em- 
ployee cannot  possibly  set  aside  sufficient  money 
out  of  his  pay  to  buy  a  large  enough  block  so  that 
the  dividends  on  it  appreciatively  affect  his  in- 
come. Further,  he  docs  not  intimately  connect 
his  daily  tasks  with  his  semi-annual  dividend — he 
knows  in  a  general  way  that  work  affects  the 


162  Man  to  Man 

dividends  but  he  does  not  keep  it  before  him  every 
day  and  every  minute — the  dividend  periods  are 
too  infrequent.  Therefore  I  take  stock  purchas- 
ing by  employees  primarily  as  an  encouragement 
to  thrift  and  not  as  an  aid  to  a  better  industrial 
relation.  Profit  sharing  without  stock  ownership 
— considering  the  workers  and  the  corporation  as 
partners — is  on  a  different  footing. 

Undoubtedly  the  phrase  "profit  sharing"  is 
alluring.  It  seems  very  fair  to  share  the  fruits  of 
industry — to  make  the  workers  partners  with  the 
company.  But  is  it  basically  sound?  The  stock- 
holders or  the  owners  of  an  investment  are  not  in 
like  case  with  the  workers.  The  one  offers  to 
gamble  his  money  against  the  chance  of  profit; 
the  worker  is  paid  for  his  services — for  his  con- 
tribution— and  he  has  no  power  to  ensure  that  his 
efforts  will  result  in  a  profit  upon  the  capital. 
He  knows  that  his  work,  well  done,  should  result 
in  a  profit,  but  he  does  not  know  how  many  other 
considerations  may  step  in  to  diminish  that  profit. 
He  is  not  a  co-manager;  he  is  a  worker.  It  is  the 
decisions  of  others  and  not  alone  his  work  which 
determine  profits.  He  can  fairly  ask  that  he  re- 
ceive for  that  which  he  supplies — his  work — but 
for  nothing  else.  Are  we  not  trying  to  mix  oil 


Iiulustri.il   Democracy  i'»; 

and  water  when  we  set- k  to  mix  the  return  of  the 
worker  ami  the  profit  of  the  corporation  ? 

I  can  conceive  that  the  wages  might  he  con- 
sidered as  a  drawing  account  against  profits  ami 
that  the  stockholders  and  the  workers  could  then 
pool  their  interests  in  the  whole  outcome;  or  again 
I  can  imagine  a  case  where  the  worker  might  have 
enough  to  live  on  during  the  three  or  six  months 
between  settlement  periods  and  then  take  his 
share.  Hut  in  tin-  plans  which  I  have  seen,  tin- 
workers  and  the  shareholders  do  not  pool  ilnir 
interests  and  it  is  out  of  the  question  to  assume 
that  workers  can  exist  for  several  months  without 
drawing  pay.  The  usual  profit-sharing  scheme 
simply  says  that  a  certain  portion  <>f  the  net  earr- 
ings applicable  to  dividends  shall  he  set  asid>% 
ami  distributed  to  the  workers  according  to  their 
salaries.  Sometimes  only  the  executives  are  in- 
cluded, or  a  certain  period  of  service  must  elapse 
before  profits  are  shared,  or  again  tin-  distribution 
may  be  made  to  all  who  are  in  the  employ  at  the 
particular  time,  \\hen  the  executives  alone  are 
included,  the  plan  seems  to  woik  because  the 
executives  are  the  ones  who  commonly  have  in 
their  hands  the  making  of  profits.  But  the  work- 
ers seldom  consider  the  payment  in  its  dividend 


164  Man  to  Man 

phase.  They  regard  it  as  a  kind  of  bonus  which 
reaches  them  without  much  rhyme  or  reason— 
as  manna  from  Heaven. 

Sufficiently  educated  employees  may  grasp 
corporation  finance.  If  so,  they  are  then  entitled 
to  a  share  in  the  determination  of  the  profits — to 
a  distinct  voice  in  the  management.  Such  a 
voice  is  seldom  given;  it  is  rare  to  find  directors 
elected  by  employees  and  still  rarer  to  find  them 
with  any  real  say  in  management.  As  now  con- 
stituted, profit  sharing  is  only  an  arbitrary  bonus. 
It  is  not  mutual,  for  the  workers  cannot  also 
be  asked  to  bear  losses;  the  stockholders  have 
to  bear  losses — the  loss  of  the  earning  power 
of  their  money  through  the  passing  of  a  dividend 
or  an  actual  depreciation  of  their  capital  invest- 
ment through  the  impairing  of  the  capital  fund. 

Practically  considered,  profit-sharing  plans  are 
ineffective  with  the  workers  because  the  dividend 
periods  are  too  remote  from  their  daily  work  and 
also  because  they  do  not  understand  the  compli- 
cated accounting  by  which  the  payments  are 
arrived  at;  thus  the  dividends  do  not  help  to 
interest  them  in  the  daily  tasks. 

After  a  long  investigation  of  many  systems  I 
have  concluded  that  it  is  unfair  to  permit  the 


Industrial   Democracy  165 

compensation  of  the  worker  to  depend  upon  any 
factor  which  he  does  not  control;  he  may  do  his 
work  well  and  hnd  that  there  are  no  profits  be- 
cause the  company  did  not  sell  at  a  proper  price, 
or  granted  improper  credits,  or  did  any  one  of  the 
thousand  things  which  lose  money.  If  under 
profit  sharing  he  does  his  work  and  g«-rs  no  divi- 
dend, he  is  very  properly  dissatisfied.  I  there- 
fore have  thought  out  a  plan  of  making  the  pay 
dependent  upon  only  that  which  the  workers 
accomplish. 

THE    COLLECTIVE    ECONOMY'    DIVIDEND 

What  regulates  wages?  The  productive  ca- 
pacity ot  the  individuals  in  the  mass.  Wages  are 
not  absolutely  high  or  low;  they  are  in  comparison 
with  the  efficiency  of  production.  Why  not  then 
base  the  increment  to  wages  on  the  efficiency  of 
production?  That  is  my  plan  in  a  word. 

Here  is  how  it  works  in  practice.  I  take  the  cost 
of  a  unit  of  production  in  the  period  preceding  the 
introduction  of  Industrial  Democracy  and  com- 
pare that  cost  with  the  results  after  democracy 
has  gone  into  effect.  If  there  is  a  saving,  then 
one-half  that  aggregate  saving  is  the  amount  of 
the  economy  dividend  for  the  period  and  is  paid 


1 66  Man  to  Man 

to  the  men  as  an  added  percentage  to  wages. 
This  is  a  dividend  upon  service.  It  should  be 
paid  at  intervals  not  longer  than  two  weeks,  to 
preserve  it  as  a  matter  of  current,  everyday 
interest.  I  add  to  it  the  element  of  competition 
further  to  stimulate.  I  arrange  for  the  award  of 
a  banner  to  the  department  which  shows  the 
greatest  saving  for  the  two  weeks.  The  banner 
— always  a  large  American  flag — is  a  prized  pos- 
session and  is  fought  for  in  the  field  of  greatest 
benefits-economy. 

The  dividend  is  regularly  calculated  on  the 
basis  of  the  savings.  Thus  it  fluctuates  and  this 
again  increases  interest,  for  it  often  is  possible  to 
post  up  just  why  the  dividend  is  low — absence 
of  workers,  carelessness,  or  what  not.  And  then 
absence  and  carelessness  take  on  a  very  definite 
money  value. 

The  economy  dividend  is  not  solely  an  account- 
ing affair;  it  is  a  relation  of  service  with  income 
and  takes  into  account  the  savings  in  defective 
output,  the  better  quality  of  the  product,  and  the 
general  betterment  of  the  business.  It  is  arrived 
at  by  thinking  as  well  as  by  accounting. 

But  how  can  such  dividends  be  calculated  in 
times  of  rising  costs  and  how  is  it  possible  to  say 


Industrial  Democracy  167 

that  this  or  that  economy  was  directly  due  to  tin- 
work  «>f  the  employees?  Take  the  second  ques- 
tion first.  All  economies  in  production  are  not 
due  to  employees,  but  I  have  found,  under  Indus- 
trial Democracy,  that  the  employees  suggest  the 
majority  of  improvements  ahead  of  the  manage- 
ment— that  they  are  very  quick  to  discover  how 
any  tiling  might  he  done  better.  And  hence  the 
agreement  that  they  share  m  all  economics  effected 
works  out  very  fairly.  And  if  the  management 
should  make  an  improvement  which  was  not  the 
result  of  an  employee's  suggestion,  the  plan  en- 
sures that  it  will  be  heartily  put  into  operation. 

Now  tor  the  first  question — the  calculation  of 
the  dividends  when  costs  are  rising.  Economy 
is  a  relative  term.  I  calculate  the  rdaths  saving 
in  cost  of  production.  Suppose  wages,  materials, 
etc.,  have  risen  5Ort',  over  a  former  period  but  pro- 
duction costs  have  gone  up  only  30%- — then  have 
not  the  production  costs  relatively  decreased? 
I  take  it  that  they  have  and  I  award  dividends 
upon  this  basis.  In  the  case  of  a  very  large- 
dividend  during  a  single  period  it  may  In-  advis- 
able to  distribute  its  payment  over  more  than  one 
period  and  in  this  case  the  undistributed  surplus 
goes  into  an  employee's  dividend  account  for  future 


i68  Man  to  Man 

distribution.  For  instance  it  would  not  pay  to 
sandwich  in  a  50%  dividend  between  two  15% 
ones. 

Another  natural  question  is  this:  Will  not  the 
economies  soon  reach  the  limit  and  thus  cut  off 
the  dividends?  When  they  do  reach  that  limit 
we  can  devise  another  plan,  but  when  I  consider 
the  actual  efficiency  of  manufacture  as  compared 
with  its  possible  efficiency  I  think  that  none  of  us 
will  live  until  the  day  when  manufacturing  per- 
fection has  absolutely  arrived.  You  will  recall 
that  the  piano  company  (Chapter  III)  has  de- 
veloped marvelously  and  yet  has  not  even 
approached  the  limit.  I  think  that  the  fear  of  per- 
fection is  scarcely  an  objection!  My  eyesight 
has  never  been  strong  enough  to  see  a  limit  to  im- 
provement. 


ni.MTKR    VIII 

IMH'STRIAI.     IHMOCKACY,     "Hi  I       1  M1M.OYI  1  S,     AND 

•mi:   t MOSS 

THK   reaction   upon  the  workers  of  t!u-  spirit 
ot  the  square  deal  as  administered   through 
Industrial  Democracy  has  in  every  case  brought 
at  least  these  live  changes: 

/.    .In  :ncrt\:s;'  a:  p'oJuction. 

j.    A  dfCTca>f  it:  the  cos!  <  t'  production. 

?.    ./  dfcrfn^f  in  tr.f  Lil-.r  I:CT.  j-.cr. 

.;.  ,-/  Tf?uUii'\'>r.  tk'Giighrr.i'.  thf  community  as  a 
dfsifiillf  place  to  work  i>:  ar.d  consfqutntly  a  grfaifr 
catf  in  hiring  vifii. 

5.  .7?:  immunity  from  strikes  an.!  other  labor 
troubles. 

This  has,  I  grant,  some  of  the  earmarks  of  the 
industrial  millennium  it  sounds  a  hit  too  good  to 
be  true.  I  admit  that  often  the  results  astound 
me  until  I  reflect  that  I  should  he  no  more  sur- 
prised by  workmen  in  mass  being  efficient  than  by 


170  Man  to  Man 

a  single  worker.  It  is  simply  that  we  have  gotten 
into  the  habit  of  thinking  that  sloth  and  inatten- 
tion are  the  natural  attributes  of  the  man  who 
works  for  hire.  But  it  is  just  as  natural  for  a 
man  to  exert  the  best  that  is  in  him  when  working 
in  a  shop  as  when  playing  on  a  baseball  team. 
The  real  trouble  is  that  we  have  denied  him  the 
opportunity  and  the  reward  for  self-expression  in 
the  average  factory;  we  have  organized  with  so 
little  attention  to  the  human  factor  that  we  have 
in  effect  thrown  away  brain  power  and  taken  only 
body  power.  We  have  become  so  obsessed  with 
the  utility  of  machines  that  we  have  tried  to  make 
a  machine  out  of  a  human  being. 

Everyone  grants  that  mere  opportunism  will 
not  make  a  big  man — that  the  larger  material 
successes  in  life  are  the  products  of  imagination 
as  much  as  of  any  other  quality;  but  we  forget 
that  these  same  qualities  are  useful  in  every  sphere 
of  life — that  each  job,  no  matter  how  big  or  how 
small,  is  capable  of  expansion.  One  frequently 
hears  the  term  "unskilled  worker";  it  serves  well 
enough  as  a  designation  for  the  man  who  has  no 
particular  trade,  but  it  should  not  be  the  classifica- 
tion of  a  job.  There  are  no  tasks  which  do  not  re- 
quire some  measure  of  skill  if  the  whole  of  the  task 


Industrial   Democracy  171 

is  to  IK-  realized.  Industrial  Democracy  sptrdilv 
transforms  "unskilled"  jobs  and  in  a  perfectly 
natural  way.  A  task  needing  little  dexterity  is 
usually  subsidiary  to  a  more  skilled  one;  in  a  way 
it  feeds  to  it.  The  trained  worker  is  the  rirsr 
to  grasp  the  opportunities  of  working  :i  i:k  the 
employer  and  very  quickly  he  takes  notice  of  the 
meptness  of  the  laborer  and  at  once  proceeds  to 
instruct  him  —to  make  him  a  skdled  laborer. 
The  passing  of  the  common  laborer  is  immediately 
reflected  in  the  labor  turnover;  it  has  been  wrongly 
thought  that  one  man  was  about  as  good  as  an- 
other in  these  classes  and  not  much  attention 
has  been  paid  to  them — they  hare  been  allowed 
to  come  and  go  almost  without  remark.  The 
waste  through  having  "unskilled  labor"  about 
has  been  prodigious;  no  one  has  been  able  even  to 
estimate  it. 

It  is  inevitable  that  the  cooperative  feeling 
should  extend  to  bringing  up  the  grade  of  the 
laborer  and  giving  him  a  future.  Commonly  he  is 
disregarded  by  the  other  workers;  they  call  him 
a  "wop"  and  dismiss  him  as  such.  But  with  the 
economy  dividend,  cooperation  has  a  definite 
money  value;  what  another  man  is  or  is  not  doing 
becomes  a  financial  as  well  as  a  moral  concern  to 


172  Man  to  Man 

his  fellow.  It  is  money  out  of  pocket  to  have  him 
loafing  or  going  about  his  task  in  snail  fashion. 
And  the  other  workers  quickly  see  to  it  that  no 
man  about  the  place  does  loaf — something  which 
no  boss  could  possibly  do.  The  "unskilled 
worker"  is  eliminated  in  Industrial  Democracy 
because  he  is  not  efficient — he  is  eliminated  not 
in  the  flesh  but  in  the  spirit.  He  is  made  over 
into  a  new  being. 

EFFECT    ON    PRODUCTION 

The  cooperative  exertion  at  once  makes  itself 
felt  in  production  although  I  have  never  stressed 
quantity  of  output.  My  theory  of  business  is 
that  quality  should  control  quantity  and  that  thi 
truly  successful  enterprise  is  that  which  makes  the 
best  in  its  line  at  the  price.  It  may  also  turn  out 
the  most,  but  I  regard  that  as  secondary — that 
quantity  must  never  overshadow  quality.  A 
uniformly  first  grade  of  production  ensures  a  con- 
tinuity of  demand  that  makes  for  stable,  profit- 
able business.  But  greater  production  is  an  in- 
evitable sequence  to  putting  the  heart  into  the 
work.  You  cannot  drive  a  man  as  fast  or  as  far 
as  he  will  go  of  his  own  tense  will  and  this  has 
been  proven  to  me  time  and  again.  Self  pro- 


Industrial   Democracy  173 

polled,  workers  will  make,  and  without  effort, 
production  records  that  could  scarcely  be  at- 
tained by  inhuman  "speeding  up";  they  use  so 
little  effort  that  they  are  surprised  when  they 
see  the  figures!  In  some  instances  it  is  possible 
to  point  our  specific  mechanical  improvements 
which  are  responsible  for  part  of  the  increase,  but 
always  the  really  big  improvements  have  been 
personal  and  not  mechanical  -human  improve- 
ments that  product-  new  machines  ami  methods. 
The  pace  -Joes  not  come  from  "speeding  up"  as 
under  the  Taylor  and  other  efficiency  plans;  it 
Comes  from  within,  not  from  without.  I  take  the 
general  leavening  as  much  more  important  than 
single  noteworthy  performances — team  play  as 
more  important  than  individual  star  plays. 

Look  at  a  few  records  of  what  has  been  accom- 
plished without  additions  of  equipment  and 
sometimes  with  an  actual  decrease  of  personnel: 

An  Ohio  steel  fabricating  plant  paid  riveters 
37.8  cents  and  2^.3  cents  per  hour  in  April,  1917. 
and  the  record  for  the  assembly  room  then  stood 
at  15.017  rivets;  exactly  four  months  later  they 
were  paying  47.2  cents  and  35.4  cents  respectively 
to  the  same  classes  of  men,  but  the  average  of 
rivets  had  risen  to  iS,</>7.  This  is  only  one  of  the 


174  Man  to  Man 

many  cases  where  wage  increases  have  brought 
cheaper  production. 

At  the  Atlantic  Refining  Company  of  Cleve- 
land the  production  increase  per  dollar  paid  in 
wages  (the  real  economy)  is  represented  by  these 
startling  figures:  April,  18%;  May,  21%;  June, 
33i%;  July*  44%;  August,  74%. 

The  Kaynee  Company,  makers  of  blouses,  in 
ten  months  increased  their  business  34%.  For- 
merly they  had  worked  many  nights  and  most 
Sundays  in  an  effort  to  keep  abreast  of  orders; 
they  made  this  remarkable  increase,  but  were 
able  also  to  do  all  the  work  in  shorter  daily  hours 
than  before  and  without  any  overtime  whatso- 
ever. 

The  Printz-Biederman  Company  of  Cleveland 
reports  a  production  nearly  50  %  in  advance  of 
all  previous  records  with  a  net  increase  of  per- 
fectly made  garments  and  a  net  decrease  in  the 
cost  of  manufacture,  at  the  same  time  increasing 
wages  and  decreasing  hours.  A  textile  manu- 
facturer increased  production  one-third  within 
a  year  and  also  eliminated  all  overtime  and  Sun- 
day work  and  cut  the  day  from  ten  to  nine  hours. 
The  American  Multigraph  Company,  because  of 
the  cooperative,  interested  spirit  of  the  employ- 


Iiulustri.il  Democracy  175 

cos,  increased  more  than  40%  over  its  former 
st.tiul.iul  for  a  year. 

Hut  what  is  more  important  than  these  startling 
increases  in  production  is  the  fact  that  in  every 
case  the  quality  of  the  product  bettered  as  greatly 
as  the  production.  It  is  an  approach  to  perfec- 
tion when  quality  increases  with  quantity.  Put 
is  real  manufacturing! 

These  results  have  not  been  attained  (as  I  have 
tried  to  show  in  the  preceding  chapters)  in  any 
one  line  ot  work  or  with  any  one  class  of  workers. 
Industrial  Democracy  is  in  operation  with  makers 
of  women's  wear,  men's  clothing,  boys'  waists, 
paper  bags,  pianos,  steel,  automobile  parts, 
paints,  furniture,  tobacco  pipes,  textiles  of  various 
sorts,  and  in  several  machine  shops.  The  workers 
are  both  male  and  female  and  hail  from  all  classes, 
some  American,  many  foreign,  some  speaking 
English,  some  speaking  little  or  none.  In  bhorr, 
we  have  tried  out  Industrial  Democracy  with 
every  possible  combination  and  permutation  of 
labor  and  in  nearly  every  section  of  the  industrial 
East  in  small  towns  and  in  large  cities.  I  can 
find  no  single  controlling  circumstance  running 
through  these  various  installations  of  such  a 
common  nature  as  to  permit  one  to  ascribe  sue- 


176  Man  to  Man 

cess  to  anything  other  than  the  basic  spirit  of  the 
organized  "square  deal." 

HOW   THE    WORKERS    RECEIVE   THE    PLAN 

It  must  not  be  imagined,  however,  that  the  work- 
ing people  have  been  eager  from  the  start  for  demo, 
cratic  government.  They  have  not  been  eager 
for  anything  but  high  wages  for  little  work. 
Rather,  that  is  what  they  all  think  they  want  but 
really  they  never  know  what  they  want.  They 
are  restless  in  hopeless  fashion;  they  bay  at  the 
moon,  they  work  for  this  or  that  generally  in 
terms  of  money,  but  are  never  satisfied  when  they 
get  the  money.  In  no  case  have  they  thought  of 
self-government.  The  English  labor  party  in 
its  "platform"  asks  for  a  greater  share  in  the 
management  of  industry,  but  I  suspect  that  this 
is  largely  a  socialistic  demand  and  that  Mr. 
Arthur  Henderson  would  be  at  a  loss  to  suggest 
specific  ways  to  put  the  ideas  into  force.  In 
America  I  have  not  discovered  any  apparent  de- 
sire to  participate  in  management;  in  fact,  the 
tendency  of  the  union  has  been  to  discourage  any 
steps  to  make  the  relations  between  employer  and 
employee  other  than  one  of  bargain  and  sale.  I 
have  found  no  particular  welcome  for  my  ideas;  I 


Industrial   Democracy  177 

have  usually  been  received  with  suspicion  as  a 
"guv"  rakrn  on  the  management  to  "put  some- 
thing over." 

\\Y  have  talked  too  much,  preached  too  much  at 
employees.  \Ve  have  tended  toward  moralizing 
ami  senr.om/ing  as  from  a  pulpit  and  have  as- 
sumed that  only  the  men  were  at  fault.  I  hat  is 
the  trouble  with  most  "welfare  work"  it  stoops 
down  to  uplift  the  "fallen  worker";  it  dots  not 
regard  him  as  a  reasoning  human  being,  hut  as 
some  kind  <>t  an  animal  which  ought  to  he  taught 
to  live  as  living  is  dehned  hy  the  welfare  worker. 
I  have  no  quarrel  WIMI  what  welfare  work  teaches; 
I  think  it  is  lis'j.t  that  shops  should  he  as  clean 
and  pretty  as  the  circumstances  will  pennir.  that 
employees  should  live  in  neat  houses  and  have 
flowers,  and  that  they  should  have  full  oppor- 
tunity for  education.  Hut  I  take  it  that  all  of 
these  tilings  are  merely  incident  to  employment 
—that  they  are  a  duty.  What  I  do  not  like  is  the 
welfare-  work  of  what  might  he  called  an  e\  ange- 
lisiiC  character  directed  hy  the  too  common 
type  ot  .social  worker  who  is  a  product  of  some 
charity  organization— the  kind  of  worker  who 
noses  about  in  the  homes  and  stops  at  no  invasion 
of  private  life.  That  sort  of  uvlfare  work  does  a 


.  *"V«r« 

4.  '• '  > 
1  '        I  • 
178  Man  to  Man 

deal  of  harm  because  only  the  most  ignorant  of 
foreigners  will  not  resent  prying  and  meddling. 
Therefore  when  I  begin  to  talk  of  Justice  I  must 
always  overcome  the  strong  sentiment  against 
one-sided  preaching;  I  have  early  to  demonstrate 
that  what  I  say  applies  to  the  management  as 
well  as  to  the  men  and  that  we  are  all  on  exactly 
the  same  plane. 

The  second  big  suspicion  is  that  I  am  a  disguised 
efficiency  man  and  that  I  am  going  to  pull  some 
new  "speeding  up"  stunt  out  of  my  bag.  The 
very  large  number  of  first-class  efficiency  men  have 
had  the  misfortune  to  be  classed  with  the  com- 
paratively few  charlatans  who  masquerade  as 
experts.  Indeed  the  best  men  in  the  profession 
have  adopted  the  title  of  "industrial  engineers" 
to  try  to  get  away  from  the  prejudice  against 
false  efficiency.  The  trouble  with  the  "fake" 
experts  is  that  they  have  seldom  done  more  than 
wholly  upset  working  conditions  in  trying  to 
transform  men  into  machines,  quite  regardless  of 
the  men  themselves.  Thus  they  have  earned  a 
great  measure  of  ill-will  by  making  unpleasant 
tasks  even  more  unpleasant,  and  aided  by  the 
welfare  department,  have  fostered  the  idea  that 
employers  generally  are  trying  to  produce  a  race 


Industrial   Democracy 

of  healthy,  docile  work  horses.  (J.  K.  Chesterton 
has  so  stamped  all  the  English  welfare  effort. 
The  socialistic  labor  agitators  have  not  lost  a 
chance  to  add  to  this  idea  and,  unfortunately, 
some  very  well-meaning  capitalists  have  played 
up  to  the  opinion  by  posing  as  benevolent  despots. 

Thus  I  have  at  least  a  double-barrelled  suspi- 
cion to  overcome  and  it  is  not  an  easy  task  to  get 
down  to  a  footing  of  mutual  trust.  It  takes  weeks 
and  weeks  to  replace-  ill-will  with  good-will;  my 
practice  is  not  only  to  create  interest  in  the  busi- 
ness policy  of  morality  by  straight,  simple  talks, 
but  also  to  go  about  among  the  men  in  man-to- 
man fashion,  to  talk  with  them  and  generally  to 
get  on  a  basis  of  trust  and  friendship.  I  like  to  do 
tiiis:  I  could  not  do  it  were  I  not  sincere  in  my 
conviction  that  I  can  do  no  greater  work  in  life 
than  to  spread  the  doctrines  of  Industrial  IX- 
mocracy,  and  thus  give  hope  to  workers.  It  is  a 
task  for  which  absolute  sincerity  is  a  prerequisite. 

It  is  right  at  this  point  that  the  personal  ele- 
ment enters  in  the  introduction  ot  democracy— 
as  I  have  mentioned  in  the  preceding  chapter. 
In  even  the  fairest  shops  there  are  many  petty 
injustices  done  from  day  to  day  which  never  come 
to  the  attention  of  the  higher  executives;  foremen 


i8o  Man  to  Man 

will  tyrannize  now  and  again,  workers  will  haze 
unpopular  associates;  pay  masters  will  make  errors 
and,  often  in  the  lofty  manner  assumed  by  some 
clerks,  refuse  to  correct  them.  These  little  incidents 
make  for  hard  feelings — they  are  held  against  the 
owners — and,  before  getting  on  a  broad,  firm  plat- 
form of  justice,  it  is  quite  necessary  to  see  that  little 
injustices  do  not  exist.  Once  the  machinery  of 
Industrial  Democracy  is  working,  these  matters 
are  taken  care  of,  but  in  the  early  days  it  is  well 
to  make  sure  that  they  are  corrected  at  first  hand. 
It  might  well  be  that  no  member  of  an  existing 
management  could  sufficiently  gain  the  confidence 
of  the  people  to  do  his  selling  work,  but  that  is  an 
individual  matter.  The  big  thing  is  to  make 
certain  that  it  is  not  only  done,  but  done  in  entire 
sincerity. 

Selling  basic  ideas  of  fair  play  through  the  suc- 
cessive meetings  for  the  adoption  of  the  Busines? 
Policy  is  in  reality  a  course  fitting  for  democracy. 
Just  as  it  would  be  unwise  to  turn  a  monarchy 
overnight  into  a  complete  democracy  so  is  it  un- 
wise to  make  a  sudden  change  in  the  management 
of  a  company.  It  is  better  to  go  at  it  gradually, 
first  to  inculcate  the  principles  upon  which  you 
are  to  proceed  and  to  educate  the  people  to  a  con- 


Industrial   Democracy  181 

ception  of  the  functions  which  arc  to  be  placed 
with  them.  Perhaps  they  start  with  a  notion 
that  capital  and  labor  are  of  necessity  antagonistic; 
often  I  know  that  they  do  approach  from  that 
angle  and,  if  at  once  pur  in  control,  they  might 
rival  the  Russian  Soviets  in  the  distance  of  their 
circumlocutions.  I  am  not  sure  that  they  would; 
there  is  a  very  fair  amount  of  common  sense  in 
every  group  of  workmen  in  America;  they  may 
talk  wildly  when  they  are  merely  talking  to  arouse, 
but  when  it  comes  to  action  they  are  law  abiding 
to  the  last  degree.  They  are  nor  Russian  peas- 
ants. However,  it  makes  for  smooth  process  for 
all  to  have  a  common  intention  from  the  start. 
Developing  the  common  intention  creates  interest, 
and  when  the  democratic  orgam/ation  finally 
arrives  the  people  have  a  very  definite  idea  of 
what  is  to  be  done. 

I  have  had  many  rabid  socialists  and  a  few 
anarchists  in  my  meetings;  I  welcome  them. 
Once  they  become  convinced  <>f  the  essential  fair- 
ness ot  the  plan,  they  use  their  undoubted  forensic 
talents  to  aid  in  development.  No  matter  how 
destructively  a  worker  may  talk  our  of  meeting  I 
find  that  as  a  legislator  h  •  is  conservative — that 
he  will  :u  '.  fry  to  derange  his  own  people.  There 


1 82  Man  to  Man 

seems  to  be  a  vast  difference  between  prescribing 
for  the  world  at  large  and  prescribing  for  the  men 
and  women  right  in  the  neighborhood.  Abstract 
theories  fall  before  the  stone  walls  of  fact. 

Curiously  enough  the  votes  of  the  legislative 
bodies  in  Industrial  Democracy  tend  to  the  con- 
servative and  incline  toward  the  company  rather 
than  toward  the  workers.  Indeed  sometimes  laws 
are  passed  which  seem  too  harsh  and  the  Cabinet 
finds  it  necessary  to  ask  for  modifications  to  lessen 
the  severity.  This  is  particularly  the  case  with  re- 
spect to  penalties  for  absences  and  the  like,  where- 
by dividends  or  parts  of  dividends  are  forfeited. 
The  dividend  provides  the  legislatures  with  a 
weapon  which  they  are  sometimes  too  prone  to  use; 
they  underestimate  the  force  of  public  opinion 
which  is  their  real  weapon  and,  factory  fashion, 
think  that  a  penalty  should  always  be  provided. 
The  punishment  nearest  at  hand  and  easiest  to 
enforce  is  the  forfeiting  of  a  dividend  or  a  part 
thereof.  Sometimes  they  thus  make  the  penalty 
too  great.  As  they  grow  in  legislative  experience, 
they  find  that  money  penalties  are  not  the  most 
efficient  and  they  are  sparing  with  them.  The.fully 
developed  spirit  of  cooperation  resting  on  public 
opinion  is  shown  in  this  communication  from  a 


Iiulijsiii.il   DcmovT.uy  iw  : 

committee  of  the  House  of  th<-  Printz-Bicdcrmaii 
Company  on  the  shortening  of  v,oik  hours: 


June   I,   1915. 
To  TTI F  HorsK  or  RrrnFsFNT<\Tivr«i: 

Your  Committee  appointed  t->  drjft  a  bill  recommend, 
ing  t!ic  reduction  of  the  working  hours  to  48  hour*  per 
week,  and  recommending  the  necessary  rules  and  regulations 
applying  to  such  a  change,  submits  the  following  for  your 
approval: 

\Vc  recommend  thjt  the  working  hours  be-  reduced  from 
4<;J  hours  to  4$  hours  per  week. 

In  consideration  of  the  foregoing  the  employees  of  th« 
Print/-  Im-derman  Company  guarantee  their  earnest  co- 
operation to  give  48  hours  of  actual  service.  1  Ins  dots  not 
mean  any  harder  work  on  the  part  of  any  individual—  it 
merely  means  increasing  each  individual's  efficiency  as  a 
workman,  and  the  elimination  of  all  things  which  now  cause 
loss  of  time. 

The  greatest  loss  of  time  now  occars  through  the  following 
causes: 

1  ardtness  in  arrival. 

Leaving  the  work  before  closing  time  for  washing  up  and 
changing  clothes. 

Conversation  during  working  hours. 

Misuse  of  the  toilets. 

As  a  hrst  consideration,  we  wish,  however,  to  recommend 
the  following  plan  for  the  elimination  of  tardiness: 

An  honor  system  should  be  m.ide,  similar  to  that  followed 
out  in  the  grammar  grades,  that  is  those  people  ha>mg  a 
perfect  record  of  bein^  on  time  every  day  in  the  wtik  should 
have  their  names  appear  on  the  bulletin  boards,  aUo  those 
having  satisfactory  records.  Kvery  few  weeks  or  so,  con- 
venient to  the  time  urticc,  there  could  be  ported  a  record  of 


1 84  Man  to  Man 

those  names  that  appeared  the  greatest  number  of  times  on 
the  weekly  notices,  and  a  reward  granted.  The  reward,  how- 
aver,  is  optional. 

In  order  to  make  48  hours  not  only  a  reality,  but  a  success, 
these  things  which  at  present  cause  so  much  loss  of  time  must 
be  eliminated.  This  Committee,  therefore,  recommends  that 
each  individual  be  advised  by  a  personal  notice  regarding  this 
recommendation,  and  asked  to  give  their  best  cooperation 
to  prevent  loss  of  time  for  any  of  the  above  reasons.  It  will 
be  necessary  for  each  individual  to  be  prompt  in  his  atten- 
dance not  only  in  the  building,  but  at  his  work.  That  is, 
each  one  should  be  ready  to  work  when  the  bell  rings  and 
should  not  leave  his  work  until  the  closing  bell. 

In  the  event  of  the  adoption  of  this  resolution,  we  suggest 
that  a  warning  bell  be  sounded  five  minutes  before  the 
regular  working  bell,  both  in  the  morning  ard  at  noon. 

Of  course,  it  is  to  be  understood  that  it  is  necessary  to  wash 
the  hands  quite  often  during  the  summer  months  in  order  to 
prevent  the  garments  from  being  soiled.  This  should  in  no 
way  affect  the  consideration  of  this  resolution. 

Time  lost  because  of  the  management  of  the  factory  should 
in  no  way  affect  this  resolution.  If  there  is  any  time  lost 
in  any  department  because  there  is  no  work  on  hand,  the 
individual  employees  are  not  responsible.  However,  every- 
one should  cooperate  to  eliminate  as  much  of  this  as  possible 
and  should  not  hesitate  in  recommending  plans  which  might 
better  these  conditions. 

It  is  further  recommended  that  the  foremen  be  on  time  to 
give  their  service  to  assist  this  Committee  in  the  elimination 
of  tardiness. 

It  has  been  deemed  advisable  to  recommend  no  punish- 
ment for  the  individuals  who  do  not  comply  with  these  re- 
quests, especially  when  each  must  realize  the  effort  which 
must  be  put  forth  to  make  the  48  hour  week  practicable. 

It  is  to  be  under  :tood  that  those  who  do  not  comply  with  these 


Industrial   Democracy  185 

ni    art   er>nJfmninf   tkf   4$   Aoar  Ktek   ar-.J  art 

fc.'.Vf/V  Ittfitk. 

It  it  further  recommended  that  three  member*  of  t'tis 
Committee  he  permanent  member*  anil  they,  together  with 
three  members  appointed  by  the  Senate,  shall  be  eirxrcfrd  to 
submit  necessary  rules  and  regulation!  a%  thry  are  required, 
which  shall  guarantee  that  every  employee,  re^ardies*  of 
any  condition,  d<>  his  part  in  the  furtherance  of  giving  4°  hours 
of  service  -these  rules  and  regulations  M  be  approved  by  the 
Senate  and  the  House  of  Representatives. 

The  working  period  to  be  from  7:15  to  4:4;  with  forty-five 
minutes  for  lunch  on  five  days  of  the  week  and  7:1^  t>>  Il:?o 
on  Saturday,  beginning  Monday,  June  7th.  I  he  rea  .on  the 
Committee  recommends  these  hours  is  in  order  that  the  em- 
ployees may  avoid  the  rush  hour  on  the  cars  in  the.  evening 
and  also  it  was  felt  that  fifteen  minutes  at  this  time  of  the  day 
\\ould  be  nvre  appreciated  than  in  the  morning.  It  was  the 
opinion  of  the  members  of  the  Committee  that  those  who  ha\  e 
had  ditf.cuhy  in  bcin.;  on  time  at  7:15  \\ould  hud  it  no  easi«  r 
to  be  on  time  at  7:30,  or  any  other  hour  which  Plight  h<- 
adopted. 

Respectfully  submitted, 
1  HI    CoMMirnT, 

1 1.  \\  rr.i  H,  C'!::-.ir::inn. 

I  have  not  found  anywhere  a  desire  to  chair;--  the. 
general  internal  workings  of  the  shop  or  t  >  ihs- 
pense  witli  local  executive  control  hy  the  fnr--nu-n. 
The  foremen,  it  must  he  remembered,  sit  in  the 
Senate  and  thus  are  part  of  the  legislature.  1  hey 
have,  as  noted  in  the  cases,  a  joint  law-making 
power  with  the  workers  and  through  the  proceed- 
ings and  votes  of  the  House  quickly  learn  the  senti- 


'i86  Man  to  Man 

ment  of  the  people.  They  are  stripped  of  arro- 
gant power  by  reason  of  the  right  of  appeal  and 
investigation.  Every  employer  knows  that  one 
of  the  most  prolific  sources  of  discontent  flows 
out  of  petty  tyranny  by  foremen.  The  men  who 
come  up  from  the  ranks  are  proverbially  the  harsh- 
est task  masters. 

Nothing  has  arisen  to  lessen  or  displace  the 
authority  of  the  foreman  or  sub-foreman,  but 
there  is  no  room  in  Industrial  Democracy  for  the 
autocratic  subordinate  who  does  not  share  in  the 
spirit  of  the  new  freedom.  And  this  is  as  it  should 
be.  It  is  of  the  utmost  importance  to  the  manage- 
ment that  no  foreman  who  cannot  cooperate  with 

the  men  should  hold  his  place.     They  must  be 
-**.-''  A  .  * 

leaders  and  not  drivers.    Generally  I  have  found, 

however,  that  the  foremen  fall  very  quickly  into 
line — that  they  are  really  glad  to  have  the  oppor- 
tunity to  work  with  their  people  and  that  the  pose 
of  absolutism  has  been  assumed  through  a  fancied 
necessity  and  not  because  of  desire;  they  are  quite 
as  ready  to  drop  it  as  the  men  are  to  have  them. 
The  misfits  are  few,  and  they  are  real  mistakes 
which  should  have  been  corrected  in  any  event. 

The  right  to  review  by  the  workers  does  not 
operate  to  lessen  the  foreman's  authority;  rather 


lruiustri.il   Democracy  187 

it  tends  to  strengthen  it.  Both  he  and  the  worker 
know  that  bluffing  is  out  of  tin-  question;  that  an 
investigation  will  uncover  tlu-  truth.  Hcnct-  the 
worker  will  not  kick  for  the  mete  love  of  kicking, 
inn  the  foreman  exert  authority  because  he  likes 
the  feeling  of  power.  Orders  are  not  given  with- 
out a  comprehension  of  their  justness  and  there- 
fore tlu-v  are  given  surely  in  the  confidence  that 
they  should  he  obeyed;  and  they  are  obeyed. 

A  worker  cannot  refuse  to  obey  because  he 
thinks  the  order  is  unjust;  he  must  do  what  he  is 
told.  The  rules  are  absolute  on  thar  point,  for 
otherwise  discipline  would  be  replaced  by  argu- 
ment, which  everyone  agrees  would  be  destruc- 
tive. There  has  never  been  manifested  thr  least 
tendency  toward  holding  obedience  in  a!n  \  ance 
pending  an  appeal,  as  did  the  Russian  soldiers  so 
disastrously.  On  the  contrary,  the  order  must  be 
carried  out  and  its  justice  later  inquired  into. 
And  there  arc  really  very  few  appeals  or  requests 
lor  investigations  of  grievances  — I  can  almost 
count  them  on  my  ringers  throughout  all  the 
plants  where  Industrial  Democracy  is  working 
today.  People  are  much  more  exercised  over 
their  right  to  appeal  than  actually  to  appeal;  the 
:'.;;ht  to  have  justice  tends  to  promote  justice. 


1 88  Man  to  Man 

But  suppose  an  appeal  is  taken  and  resolved 
against  a  foreman  and  in  favor  of  the  worker;  does 
not  that  put  the  worker  in  a  bad  position?  Will 
not  the  foreman  hold  it  against  him  ?  One  would 
imagine  so.  But  such  is  not  the  case.  The 
foreman  seldom  harbors  any  particular  resent- 
ment, nor  does  the  victorious  worker  "crow";  the 
one  swallows  his  defeat  and  the  other  his  victory. 
For  each  knows  that  it  will  not  be  profitable  to  keep 
up  the  row,  bring  on  another  investigation,  and 
possibly  run  the  risk  of  dismissal.  Of  course  one 
finds,  as  in  everyday  life,  a  few  nuisances  with  a 
passion  for  litigation,  but  they  are  either  reformed 
or  gotten  rid  of  by  the  workers  themselves. 

LABOR   TURNOVER 

Without  a  mutuality  of  work,  the  hiring  and  fir- 
ing of  men  is  not  of  concern  to  the  employees  and 
only  of  incidental  interest  to  the  foremen.  A 
foreman  thinks  it  is  a  perfectly  good  excuse  to 
say:  "I  could  have  gotten  that  out  but  I  did  not 
have  the  men." 

But  firing  men  is  not  cooperation  and  also  it 
cuts  dividends.  The  Senate  holds  foremen  respon- 
sible for  the  turnover  within  their  sections — when 
a  man  is  discharged,  some  good  explanation  must 


Indtistri.il   Democracy 

he  given  even  if  the  matter  has  not  come  up  on* 
appeal.  Ami  wht-n  a  man  leaves  voluntarily  the 
foreman  is  expected  to  know  why  and  to  l>r  able  to 
say  what  he  did  to  prevent  the  going.  The  labor 
it-cord  has  great  weight  in  determining  a  foreman's 
standing  with  the  Senate  and  if  th<-  turnover  is 
abnormally  high  he  is  sure  to  be  investigated. 
That  cuts  out  indiscriminate  firing  by  foremen. 

Hut  I  think,  ir  is  the  men  themselves  who  have 
the  greatest  effect  upon  turnover.  The  older 
hands  know  that  once  a  man  clearly  understands 
the  principles  of  democracy  and  the  square  deal, 
he  will  not  want  to  leave  and  they  take  it  upon 
themselves  that  no  workers  Lave  simply  through 
a  failure  to  appreciate  conditions.  Tin-  turnover 
among  the  men  is  generally  very  low  indeed;  when 
one  omits  the  withdrawals  due  to  the  draft, 
death,  or  illness  it  is  rare  for  any  working  man  to 
seek  a  new  job,  provided  he  has  stuck  for  three 
months.  \Ye  everywhere  take  ir  as  a  surprising 
event  to  have  a  man  leave  for  higher  wages  or 
any  of  the  common  causes  of  job  shitting.  Such 
things  simply  do  not  occur,  because  the  spirit 
of  fellowship  is  so  great  that  there  is  no  desire  to 
"float"  and  the  economv  dividend  makes  such  a 
satisfactory  addition  to  wages  that  it  is  seldom 


190  Man  to  Man 

that  men  can  be  bid  away.  This  has  been  the 
universal  experience  in  all  of  the  installations. 
There  must  be  some  hiring;  in  a  large  force  changes 
are  bound  to  occur  in  personnel  through  unpre- 
ventable  causes  and  also  there  is  always  the  matter 
of  taking  on  additional  men  to  meet  the  needs 
-of  increased  production.  Since  the  beginning  of 
the  war  it  has  been  almost  as  hard  to  hire  men  as 
£o  keep  them,  but  not  a  single  plant  under  Indus- 
trial Democracy  has  had  the  slightest  difficulty 
in  hiring  men,  although  none  of  them  have  been 
able  to  offer  wages  approaching  those  of  the 
munition  workers.  The  news  of  square  dealing 
travels  rapidly;  it  is  not  necessary  to  advertise 
it — the  men  about  soon  learn  of  it  and  they  seek 
the  jobs  instead  of  insisting,  as  is  the  rule  in  these 
times,  that  the  jobs  seek  them.  Not  a  single 
one  of  the  plants  has  found  it  necessary  to  adver- 
tise for  workers,  except  in  the  cases  where  new 
departments  for  government  work  were  opened. 
In  nearly  all  of  the  plants  there  are  waiting  lists 
of  applicants  for  jobs. 

THE    ATTITUDE    OF   THE    UNIONS 

Since    all    disputes    and    wage    matters    pass 
through   the   deliberative   bodies  elected   by   the 


Industrial   Democracy  i  >i 

people  themselves,  the  opportunity  for  strikes 
from  within  does  not  exist.  There  has  never 
been  a  strike  in  the  history  of  Industrial  Democ- 
racy. But  how  about  strikes  from  without? 
How  about  the  unions  and  the  closed  shop?  Are 
all  of  these  shops  open? 

Let  me  give  some  incidents.  The  Print/- 
Bicderman  Company  had  an  open  shop,  although 
many  of  the  employees  were  union  members. 
On  September,  1915,  the  Garment  Makers' 
I'nion  decided  to  unionize  Cleveland  and  to 
start  with  this  shop.  I  he  employees  heard  ot 
the  intention  through  the  newspapers;  the  Senate 
and  the  House  passed  a  resolution  and  it  was 
ratified  by  the  general  mass  meeting.  Here  is  t lie- 
resolution: 

Whereas  the  article  appearing  in  the  1*1  ^in  Dfilfr  under 
this  date  and  attached  hereto  conveys  a  false  impression  con- 
cerning the  working  conditions  in  our  factory  and  further 
indicates  our  plant  as  the  object  of  an  unjust  attack;  we,  the 
employers  in  the  1  louse  of  Representatives,  and  Senate, 
specially  assembled  this  third  day  of  September; 

Resolved,  that  the  action  of  the  l'rint/-Biederman  Cv, 
in  giving  us  for  the  past  two  years  such  full  authority  to 
change  any  and  all  working  conditions  in  our  plant  is  fully 
appreciated  by  the  whole  bodv  of  employees,  numbering 
about  l.ooo  people  and  it  is 

Resolved,  that  we.  the  employees  of  the  Prinw-Biedcrrnan 
O>  ,  hereby  express  our  str  >ri^  disapproval  ot  the  a,  :••  >n  tAcn 


192  Man  to  Man 

by  an  outside  organization  as  shown  in  the  proposed  demand 
referred  to  in  this  newspaper  article,  and  be  it  further 

Resolved  that  we  tender  to  our  company  our  most  earnest 
and  sincere  support  for  the  present  most  fair  methods  of 
conducting  the  business. 

If  we  knew  any  stronger  language  of  expressing  our  full 
satisfaction,  we  would  use  it. 

Chairman,  House  of  Representatives. 
President,  Senate. 

The  union  never  presented  a  demand.     The  agi 
tators  left  town  that  night. 

At  a  metal  working  plant  in  Fort  Wayne, 
Indiana,  a  mass  meeting  of  the  employees  voted 
against  a  closed  shop  on  the  simple  principle  that 
they  did  not  think  it  just  to  force  any  man  out  be- 
cause he  had  not  a  union  card.  A  majority  of  that 
meeting  were  union  members.  The  shop  did  not 
have  a  strike,  but  later  strikes  were  called  in  every 
other  machine  shop  in  that  city  which  did  not  close 
to  non-union  men. 

From  this  it  might  be  imagined  that  Industrial 
Democracy  is  opposed  to  union  organization. 
It  is  not.  It  sees  no  point  of  conflict;  that  has 
also  been  the  view  taken  by  union  leaders  when 
they  have  come  into  actual  contact  with  it.  In 
every  case  wages  are  as  high  or  higher  and  hours 
as  short  or  shorter  than  the  union  scale  for  the 
district.  There  can  be  no  serious  disputes  result- 


Industrial   Democracy  193 

ing  in  breaks.  For,  jusr  as  the  people  of  the 
United  States,  no  matter  how  bitterly  they  con- 
test an  election,  always  accept  the  decision  of  the 
ballot,  so  it  seems  do  both  employees  and  employ- 
ers when  put  upon  the  same  basis  of  government. 


CHAPTER  IX 

INDUSTRIAL   DEMOCRACY   AND   THE    EMPLOYER 

DOES    granting    a  measure   of   autonomy    to 
the  worker  lessen  or  strengthen  the  author- 
ity of  the  employer? 

We  are  not  anxious  for  any  dividing  up  of  prop~ 
erty  or  for  proletarian  control,  or  for  anything 
which  smacks  of  them.  The  president,  directors, 
and  other  officers  of  a  corporation  are,  in  a  sense, 
trustees  of  the  funds  which  have  been  placed  in 
their  hands  for  operation.  Regardless  of  their 
personal  views  on  social  subjects  they  are  not, 
under  the  rules  of  common  honesty,  at  liberty  to 
try  any  fantastic  experiments  which  might  cause 
their  trust  to  be  dissipated.  An  individual,  as 
long  as  he  protects  his  creditors,  may  play  any 
sort  of  game  he  fancies  with  his  money,  but  cor- 
porate directors  are  not  in  like  case.  They  are 
not  expected  to  take  chances  other  than  those  ris- 
ing in  the  ordinary  course  of  business.  They 
should  approach  every  problem  with  a  consider- 
able degree  of  conservatism;  not  with  hide-bound 

194 


Iiuliistri.il   Democracy  iv5 

and  impervious  mind-',  nor  with  intelligence 
chained  and  fettered  In  precedent,  but  with  open 
minds,  with  the  keen  desire  "to  be  shown" 
attitude.  1  here  an-  limits  to  conservatism. 
Plunging  wildly  ahead  in  the  il.uk  may  be  !e-s 
dangerous  to  the  welfare  of  a  corporation  th.m 
crouching  fearsonuly  in  the  darkness.  I  ir- 
plunging  may  end  crashing  against  a  wall  or  again 
ir  may  find  the  way  our.  But  the  fear-palsied 
are  hound  to  stay  where  they  are.  Conservatism 
is  a  virtue  not  to  he  confused  with  ahject  mental 
inertness-  with  "standing  pat." 

In  the.se  stirring  times  no  one  can  afford  to  sir 
still.  When  evolution  ceases,  revolution  hemns. 
\\  e  have  problems  all  ahour  us  which  will  no; 
solve  themselves.  A  doctrine  of  '.r. ;s:~z  ].::"•:  i-; 
as  dangerous  to  an  industrial  unit  as  to  a  nation. 
\\  e  are  constantly  rinding  ourselves  face  to  face 
with  unprecedented  sit  tuitions.  \\  e  can  take  it 
as  an  a\:o:u  that  tlu-  measure  of  the  success  i>!  anv 
business  ;n  the  future  \\ill  be  precisely  in  accorj- 
aruv  witli  tin-  fle\ibi!;f.-  it  sho-.vs  \\\  aJaptinL;  itself 
to  new  conditions. 

1  ake  manufacturing.  1  he  properties  of  raw 
materials  will  not  changi — \ve  ma\  have  t^  learn 
to  use  diitVrer.r  kinds  of  material^,  bur  tiiat  ij 


196  Man  to  Man 

beside  the  question;  it  may  continue  for  a  few 
years  to  be  harder  to  buy  than  to  sell;  then  prob- 
ably it  will  become  hard  to  sell  and  easy  to  buy. 
But  the  ordinary  machinery  of  commerce  will 
remain  essentially  as  it  is  now.  Then  where  will 
the  great  change  come  ?  In  that  element  for  which 
we  have  as  yet  no  gauge — the  human  factor  in 
business. 

Our  human  resources  will  change.  They  are 
now  out  of  tune  with  industry.  The  relation  of 
employer  and  employee  is  in  a  state  of  suspended 
animation.  There  are  few  who  will  deny  that  we 
urgently  need  a  new  relation  between  capital  and 
labor.  Those  who  call  themselves  "radicals" 
insist  that  the  Government  find  this  new  relation. 
I  am  not  myself  convinced  that  the  Government 
can  happily  adjust  industry.  I  should  personally 
view  the  wholesale  regulation  of  business  by  the 
Government,  once  the  war  is  ended,  as  an  evidence 
that  the  business  man  is  incapable  of  adjusting 
himself  to  new  conditions  and  has  to  appeal  to 
politicians  to  do  it  for  him. 

The  big  man  sees  these  facts;  he  looks  them 
squarely  in  the  face.  The  little  man  lacks  the 
courage  to  view  facts;  he  hopes  to  avoid  them  by 
shutting  his  eyes.  The  big  man  realizes  that  up 


Iiulustri.il   Democracy  197 

to  tlu-  present  tune  "hands"  only  have  been  cm- 
plo\ed  ami  the  biggest  of  them  regret  that  they 
did  not  see  years  ago  that  human  beings  have  also 
"heads"  which  can  be  of  service  in  business; 
beads  and  brains,  capable  of  adding  intelligence 
to  the  work  of  the  hands.  The  big  man  furrhei 
knows  that  he  cannot  gain  the  use  of  brains  bv 
national  edict;  that  IK-  can  persuade  them  to  work 
only  through  some  process  of  cooperation. 

A  static  conservatism  in  these  dynamic  times 
is  not  a  virtue.  I  lie  real  question  which  now 
confronts  the  owners  or  trustees  of  any  business 
is  this: 

"How  can  we  adjust  the  human  relationships 
in  our  business  so  that  we  may  continue  to  he 
factois  in  commerce? " 

One  need  no  longer  tear  to  take  steps  lest 
one  endanger  the  investment  -the  investment  is 
already  in  danger.  The  question  now  is  to  save  it. 

\\  e  are  fond  <'l  talking  about  the  permanency  oi 
our  business  orgam/ations;  we  like  to  think  that 
they  can  inn  on  and  on,  regardless  <>t  the  individ- 
uals in  charge;  that  tlu-v  are  vast  machin-.  s  pro- 
pelled by  natural  eternal  forces  and  n<>r  by  tians- 
ient  human  beings.  I  have  yet  to  hiul  Mich  an 
organization. 


198  Man  to  Man 

Many  businesses  have  evidences  of  permanency, 
but  a  close  investigation  of  some  of  them  uncovers 
the  fact  that  they  are  really  running  on  momen- 
tum— and  it  is  well  to  remember  that  momentum 
spends  itself  if  the  executives  do  not  add  the  force 
of  new  ideas.  Every  live,  successful  business 
depends  ultimately  upon  the  energy  and  discern- 
ment of  one  man.  A  few  companies  are  fortu- 
nate enough  to  have  an  unbroken  succession  of 
competent  executives.  Generally,  however,  if  you 
plot  the  curve  of  success  in  any  business  you  will 
find  that  the  peaks  happened  when  a  strong  man 
sat  in  the  executive  chair  and  that  the  valleys 
came  about  when  a  weak  man  held  down  the 
chair.  Some  parts  of  an  enterprise  may  be  made 
almost  mechanical.  To  some  degree  you  can 
reduce  finance,  and  to  a  very  large  degree  buying, 
making,  and  selling,  to  plans  and  methods  which 
do  not  require  more  than  ordinary,  average  intelli- 
gence to  direct.  But  there  is  one  side  of  business 
which  up  to  date  has  not  been  charted — the 
human  element.  The  big  man  succeeds  and  the 
little  man  fails,  although  they  may  be  alike  in 
technical  skill  because  the  big  man  knows  how  to 
manage  the  human  element  and  the  little  man 
does  not.  If  you  will  run  over  the  roster  of  most 


Industrial   Democracy  i</> 

of  our  hip  individual  successes — Schwab,  J.  J. 
Hill,  John  II.  Patterson,  Ford,  Marshall  Field, 
Armour — you  will  discover  that  none  of  them 
founded  success  upon  technical  expert  ness  as 
much  as  upon  an  ability  to  persuade  men  to:tork 
'.nth  them.  The  greatest  of  men  cannot  do  more 
than  develop  the  cooperation  of  those  with  whom 
they  come  in  contact. 

Individuals  die;  persons  vary  in  their  thinking 
from  day  to  day  and  frequently  arc  defective 
in  their  thinking,  but  principles  arc  permanent. 
Would  not  business  attain  a  greater  permanency 
if  founded  upon  a  principle  rather  than  upon  an 
individual?  Or,  neglecting  for  a  moment  the 
permanency,  would  not  the  business  genius  find 
a  greater  play  for  his  remarkable  talents  were  In- 
able  to  free  himself  from  the  intimate  day-to- 
day supervision  of  employees? 

I  know  of  many  successful  men  who  take  the 
direction  of  their  labor  as  their  first  duty  and 
pass  fully  half  of  their  day  mixing  with  employees. 
They  find  they  can  delegate  almost  the  whole 
management  excepting  where  it  touches  the 
human  being.  I  do  not  know  of  a  single  manage- 
ment which  has  had  harmonious  labor  relations 
and  has  not  been  a  success.  Neither  do  I  know  of 


2oo  Man  to  Man 

any  institution  having  continuous  labor  difficulties 
which  has  been  successful  when  compared  with 
its  opportunities.  Labor  troubles  are  at  the  root 
of  most  business  troubles.  A  fight  between  labor 
and  capital  is,  if  long  enough  continued,  bound  to 
result  in  the  annihilation  of  capital. 

There  must  be  evolved  some  plan  to  show  men 
how  to  get  along  together — some  way  that  will 
be  just  to  all  parties  in  interest — to  labor,  to 
capital,  and  to  the  public.  For  it  is  to  be  remem- 
bered that  a  settlement  between  capital  and  labor 
will  be  but  temporary  unless  the  third  party  in 
interest — the  publics — be  considered.  That  is  the 
trouble  with  the  financial  settlements  which  are 
being  made  today  amid  the  stress  of  war.  They 
are  exclusively  for  the  momentary  benefit  of  only 
capital  and  labor;  they  do  not  at  all  consider  the 
public  that  pays  the  bills  and  without  which 
neither  can  exist.  Edward  A.  Filene,  the  Boston 
merchant,  recently  made  this  illuminating  remark: 

"No  adjustment  between  the  employer  and  the 
employee  can  be  considered  worth  while,  or  of 
eventual  benefit  to  either,  unless  it  also  results  in 
lessening  the  cost  of  service  to  the  consumer." 

The  question  with  which  I  opened  this  chapter 
— that  is,  the  effect  of  Industrial  Democracy  upon 


Iiulustri.il   Democracy  201 

thr   control   of  tin-   investment — would   1   •   more 
accurately  phras.  d: 

"Can  Industrial  Democracy  give  Midi  control 
of  thr  investment  that  it  may  not  only  be  saved 
but  also  strengthened?" 

Kverv  far-seeing,  forehanded  management 
knows  that  it  must  make  a  rhair^  -  ifi:  i.  t •>  retain 
control.  Now  look  at  the  effect  of  Industrial 
Democracy  upon  t!ie  management.  I.:  t  us  see 
what  it  does  to  the  investor's  none','  and  to  the 
public.  It  is  all  very  well  to  make  the  workers 
happy,  hut  the  end  of  business  i>  profit.  A  policy 
which  abandons  proht  in  order  t<>  give  content- 
ment to  employees  creates  an  orgam/ed  chanty— 
a  self-supporting,  eleemosynary  institution.  On 
the  other  hand,  we  know  that  profit  gained  at  the 
expense  of  the  workers,  wrung  from  them,  is  not 
only  unwholesome  and  unsavory  money,  but  also 
of  a  purely  ephemeral  character.  Cheating  work- 
ers is  just  as  bad  policy  as  cheating  customers. 

Although  we  talk  a  deal  about  democracy,  we 
are  unfortunately  afraid  to  practice  it.  \\Y  teel, 
even  if  we  do  not  say,  that  it  in  ay  be  an  instru- 
ment wielded  by  those  who  /:utr  ;:  .',  to  take  away 
from  those  who  ha*.-c;  we  mix  it  with  communism, 
with  common  ownership  instead  of  with  common 


202  Man  to  Man 

control,  in  spite  of  the  fact  that  in  the  democracy 
as  developed  by  the  United  States,  the  citizens 
do  not  usually  insist  upon  carting  home  the  bricks 
of  the  public  buildings  to  demonstrate  that  they 
have  an  ownership  in  them.  Industrial  Democ- 
racy is,  from  the  employer's  standpoint,  repre- 
sented by  a  change  of  spirit  and  not  by  a  change 
in  the  relative  rights  of  ownership.  It  is  simply 
a  hitching  up  of  labor  and  capital.  It  is  removing 
the  great  power  of  cooperation  from  the  field  of 
fancy  to  that  of  actual,  accomplished  fact.  The 
several  departments  of  the  business  function  as 
before;  no  powers  are  withdrawn;  only  remedies 
are  set  up  for  the  abuse  of  power.  Nothing  but 
ill-will  is  taken  out  of  the  business. 

Industrial  Democracy  is  not  a  weakening,  it  is 
a  strengthening;  it  is  a  providing  of  a  mechanism 
to  secure  fair  play  and  satisfaction;  an  infusion  into 
the  business  of  the  propelling  mental  instinct. 
It  is  a  change  from  a  purely  bureaucratic  govern- 
ment to  one  of  representation.  We  all  know 
how  infinitely  silly  a  government  bureaucracy 
can  become,  but  we  do  not  stop  to  think  that  a 
business  bureaucracy  can  easily  be  as  foolish;  the 
languid,  sneering,  brainless  government  clerk  who 
rouses  in  one  the  will  to  murder  is  full  brother  of 


Industri.il   Democracy  203 

the  tired  maiden  who  presides  over  the  switchboard 
of  the-  hurcaucrancallv  managed  business  office. 
Neither  is  a  human  being  during  working  hours; 
they  belong  to  that  strange  species  known  as  the 
bureaucr.it.  1  he  description  of  a  governmental 
board  as  something  long,  and  narrow,  and  wooden, 
applies  equally  to  a  hoard  of  directors  which 
keenly  feels  the  absolutism  of  its  powers.  Kew 
men  care  to  be  tsars.  I  hey  do  not  like  the 
trouble  which  the  exercise  of  absolute  power  en- 
tails; they  would  be  glad  to  have  someone  else 
around  to  do  a  little  thinking  now  and  again 
instead  of  merely  executing  orders'.  Such  a  man 
finds  no  difficulty  in  acting  as  the  chief  executive 
under  a  democratic  form  of  management.  I  It- 
issues  his  orders  as  before  and  they  are  executed; 
but  when  it  comes  to  orders  affecting  matters  of 
policy  with  the  employees,  instead  of  issuing  an 
order,  he  makes  a  suggestion.  If  he  is  a  real 
leader  and  a  wise  man  his  suggestion  will  have  in 
it  so  much  common  sense  that  it  will  be  enacted 
by  the  legislative  bodies  into  law  and  then  be 
heartily  obeyed.  If  lie  is  not  a  leader  and  has  no 
right  to  be  in  the  position,  his  orders  will  be  un- 
wise and  therefore  his  suggestions  in  Industrial 
Democracy  will  not  be  put  into  effect  as  regula- 


2O4  Man  to  Man 

tions.  If  he  is  discerning  he  will  see  that  he  has 
been  saved  from  error;  if  he  has  not  the  discern- 
ment to  know  a  mistake  when  it  is  pointed  out  to 
him,  he  should  not  be  in  a  position  to  dictate. 
The  man  who  has  a  right  to  be  an  executive  will 
find  that  his  powers  are  increased  and  made 
more  effective.  From  the  executive  standpoint 
Industrial  Democracy  may  be  viewed  as  proof  of 
the  right  to  a  position;  from  the  investor's  stand- 
point it  presents  itself  as  the  most  conclusive  test 
of  the  fitness  of  the  executives. 

For  the  individual  executive  the  transition  is 
easy;  if  he  has  thoroughly  grasped  the  Business 
Policy,  he  really  does  not  know  that  he  has  made 
a  transition.  Only  the  insincere  man  will  find 
the  going  hard;  he  will  have  endless  difficulties 
and  he  will  fail.  It  is  not  easy  for  a  man,  who  for 
many  years  has  considered  himself  a  tsar,  to  re- 
linquish his  title,  even  though  his  head  has  become 
weary  and  the  crown  of  power  so  heavy  that  it 
has  slipped  down  over  his  eyes  and  blinded  him 
to  the  facts.  Such  men  are  incapable  of  function- 
ing in  democratic  government  and  I  think  the 
general  opinion  of  business  is  that  such  men  no 
longer  belong  in  industry. 

In  two  instances,  and  in  only  two,  has  Industrial 


Industrial   Democracy  205 

Democracy  been  abandoned  ami  in  both  cases 
it  was  abandoned  because  tbe  executives  belonged 
to  the  Kaiser  type  tli.it  I  have  just  described. 
'Hie  system  did  not  fail;  it  was  unqualifiedly  suc- 
cessful. 1  he  two  cases  ate  fundamentally  alike. 
The  one  was  a  metal  working  shop  in  the  Middle 
West,  the  other  a  large  clothing  factory  in  the 
East.  The  presidents  were  the  founders  ami 
practically  the  owners  <>{  the  enterprises.  Each 
of  them  had  been  brought  up  in  tin-  <>ld  school  of 
"bossing,"  of  having  their  most  trivial  expres- 
sions taken  as  the  law  by  those  around  them. 
Each  had  the  attitude  of  "What  I  say  goes"  and 
any  one  who  disputed  tl.eir  statements  went 
forthwith  and  with  a  celerity  approaching  pre- 
cipitancy. They  had  ruled  their  establishments 
with  iron,  although  not  always  unkindly,  hands; 
were,  according  to  their  lights,  humane;  but  when 
they  conceded  a  point  they  felt  that  they  were 
being  charitable  and  paternal  and  not  simply 
just.  Their  morality  was  not  unlike  that  of  the 
Sadducees.  They  considered  their  employees 
as  dependents  and  not  as  co-workers.  1  hey 
felt  that  they  were  not  as  other  nun.  for  they  had, 
out  of  the  vast  depths  of  their  abilities,  created 
institutions  which  provided  work  and  saved  poor 


'2o6  Man  to  Man 

unfortunates  from  starvation.  They  dismissed 
from  mind  that  they  themselves  were  incidentally 
making  millions.  But  I  may  say  that  their 
opinions  were  exclusive  and  personal;  no  one  else 
shared  them.  The  day  came  in  each  institution— 
the  day  that  always  comes — when  the  workers 
asked  for  more  money  and  fewer  words.  The 
strike  spectre  loomed  on  the  horizon  and  these 
strong,  brave  men,  accustomed  to  bullying  help- 
less individuals,  quailed  before  the  thought  of 
mass  action.  For  the  time  being  they  were  ready 
to  do  anything  to  bring  peace — the  milk  of  human 
kindness  fairly  bubbled  out  of  them.  I  made  the 
mistake  of  thinking  that  they  were  sincere  and  I 
consented  to  go  forward  with  the  work  of  intro- 
ducing Industrial  Democracy. 

In  both  cases  I  thoroughly  sold  the  workers  on 
the  spirit  of  Justice,  Economy,  Energy,  Coopera- 
tion, and  Service,  and  established  Cabinets,  Sen- 
ates, and  Houses  of  Representatives.  The  strike 
talk  stopped,  the  men  went  ahead  whole-heartedly. 
Here  is  what  the  general  manager  of  the  metal 
plant  had  to  say  of  the  results  after  the  plan  had 
been  in  operation  for  nearly  a  year: — 

"First,  increased  efficiency  by  the  enlistment  of 
interest  and  thought  on  the  part  of  the  employees. 


Industrial   DcmcxTacy  207 

"Second — and  possibly  the  more  important 
the  building  of  stronger,  broader  men  and  women 
by  giving  them  broader  responsibility  and  wider 
vision,  as  by  this  method  they  are  afforded  an 
opportunity  of  seeing  the  problems  of  other  de- 
partments and  of  the  business  as  a  whole.  I  his 
results  in  a  feeling  of  brotherhood  and  c<xiperation 
impossible  to  secure  in  the  ordinary  organization." 

The  clothing  establishment  was  equally  enthu- 
siastic and  for  a  twelve  month  I  thought  that 
both  of  the  institutions  had  been  made  over. 
Although  there  were  many  strikes  in  the  trades  in 
the  localities*,  there  were  none  in  these  plants. 
Both  the  average  quality  and  the  gross  produc- 
tion increased  very  materially;  the  ill-will  <>t 
the  employees  practically  disappeared— in  short, 
a  complete  regeneration  was  under  way  and  all 
bur  completed.  Everyone  noted  the  marked 
changes  and  was  delighted. 

I  know  now  that  the  apparent  executive  con- 
version was  only  for  the  moment.  As  tune  went 
bv,  lulled  by  an  apparent  sense  of  security,  they 
began  to  disregard,  rirst  in  little  things  and  then  in 
larger  onw*,  the  principles  of  the  Business  Policy. 
I  hey  interfered  with  the  orderly  workings  of  the 
machinery  of  democracy  and.  little  bv  little,  be- 


208  Man  to  Man 

gan  to  suspend  its  functions.  They  opposed  the 
calling  of  mass  meetings;  they  pigeonholed  bills 
and  resolutions  of  the  House  and  Senate,  until 
gradually  these  bodies  found  that  it  was  useless 
to  meet.  The  attendance  dropped  off  and  finally 
they  quit  their  sessions  altogether  and  Industrial 
Democracy  died  a  lingering  death.  As  the  prac- 
tices were  abandoned  the  good-will  that  had 
been  accumulated  evaporated;  the  old  feeling  of 
distrust  came  back  with  new  force,  and  my  last 
accurate  information  on  either  of  these  companies 
was  that  their  condition  today  was  worse  than 
ever  before,  because  the  people  who  remained 
had  lost  all  faith  in  the  integrity  of  the  owners. 

These  cases  are  very  instructive  as  showing 
what  will  inevitably  happen  if  the  employer  is 
not  sincere,  if  he  does  not  remake  himself  accord- 
ing to  the  model  set  up  for  the  whole  company. 
There  is  no  room  for  the  double  standard. 
If  the  employer  violates  any  of  the  principles  of 
the  Business  Policy,  if  he  does  not  keep  the  pledge 
of  Justice  and  Cooperation,  neither  will  the  em- 
ployees and,  more  than  that,  they  will  go  the 
employer  one  better  on  every  violation.  An 
employer  must  remember  that  it  will  take  a  num- 
fcer  of  years  before  all  of  his  employees  trust  him, 


hulustri.il   Democracy  209 

and  any  straying  on  his  parr  from  the  straight 
and  narrow  path  which  has  been  laid  out  for  the 
whole  organisation  will  give  great  aid  and  comfort 
to  the  noisy  "I  told  you  so"s,  who  have  a  con- 
siderable influence  in  almost  every  factory  group. 

Hut  I  think  there  are  precious  few  employers 
who  do  not  put  the  success  of  their  work  ahovi: 
themselves.  Having  only  two  backsliders  our  of 
twenty  odd  conversions  should  l.e  a  gratifying 
rate.  However,  I  think  ir  is  high;  I  think,  that  it- 
is  at  least  the  rate  per  hundred. 

I  have  said  enough  to  show  that  Industrial 
Democracy  is  not  a  dangerous  communistic  ex- 
periment, that  ir  has  no  rufous  streaks  of  Bul- 
shevikism  and  that  it  is  an  insurance  of  invested 
capital,  not  a  speculation.  I  know  that  it  is  an 
insurance,  because  in  several  instances  it  has  hem 
introduced  while  disorder  threatened.  It  has  pre- 
vented strikes  which  would  seriously  have  affected 
the  value  of  the  investment  and  might  eventually 
have  brought  ruin.  I  do  not  care  to  represent 
Industrial  Democracy  as  a  strike  settler,  because 
that  might  confuse  its  real  merits  and  fetch  ir  into 
a  class  with  nostrums  and  panaceas.  Industrial 
Democracy  is  a  level  of  thought  and  only  inci- 
dentally a  system.  Ir  stops  strikes  because  it 


210  Man  to  Man 

goes  back  of  the  strikes  and  reforms  the  numerous 
mutual  errors  of  thought  which  generate  the  ill- 
will  and  cause  the  desire  to  strike. 

Industrial  Democracy  is  a  definite  and  profit- 
able plan  of  organization.  It  feeds  men  with 
'constructive  thought,  gives  them  more  reason 
for  active  service  to  the  company,  and  makes 
them  personally  and  collectively  interested  in 
reducing  costs  in  shop,  office,  and  sales.  It  pulls 
them  out  of  hopelessness  and  builds  up  a  spirit 
that  brings  cooperation  and  hence  profit.  Moses 
said:  "Without  a  vision  the  people  perish."  He 
said  that  a  long  time  ago,  but  it  holds  true  today - 
The  business  without  a  vision  will  have  no  aim 
and  hence  no  ginger.  It  is  the  part  of  the  manage- 
ment to  supply  the  aim;  then  the  organization  will 
put  in  the  ginger.  An  organization  is  efficient  in 
direct  ratio  to  the  clarity  of  its  vision.  In  every 
shop  and  every  office  there  lies  buried  under  the 
dust  of  routine  work,  in  the  doubts  of  opportunity, 
in  the  lack  of  faith  in  the  management,  the  dor- 
mant will  to  do  a  better  and  more  profitable  busi- 
ness. Every  organization  has  these  qualities  and 
they  can  be  brought  out  into  the  light  and  made 
to  function. 

Industrial  Democracy  increases    and   develops 


Iiulustri.il   Democracy  -ii 

the  control  over  the  investment  by  causing  every 
member  of  the  organization  to  sec  that  every  por- 
tion of  the  capita!  is  conserved  and  directed  along 
the  lines  of  more  business  and  more  profit. 

Is  nor  capital  safer  with  labor  not  competing 
bur  cooperating?  Here  is  how  the  Printz-Bictkr- 
man  Company  answers  the  question: 

"Thus  you  can  readily  see,  the  people,  under- 
standing the  troubles  and  need  of  betterments, 
make  and  abide  by  their  own  laws,  winch  laws  are 
of  course  subject  to  confirmation  by  the  Cabinet. 
Contrast  this  method,  if  you  please,  with  the  old- 
fashioned  method  of  arbitrary  rule  by  arbitrary 
authority  backed  only  by  the  power  of  discharge. 

"As  much  difference  exists  between  the  old 
and  the  new  method  of  business  conduct,  as  be- 
tween Anarchy  and  Democracy." 

Another  employer  says  that  Industrial  Democ- 
racy has  enabled  him  "to  have  a  better  and  firmer 
control"  over  every  portion  of  his  business  than 
he  had  ever  before  thought  possible. 

Industrial  Democracy,  from  the  employer's 
standpoint,  is  but  a  development  and  c  •  K>rdina- 
tion  of  existing  labor  systems.  fake  welfare  work. 
The  thought  behind  the  right  kind  of  welfare  work 
is  the  creation  of  a  physical  and  mental  environ- 


212  Man  to  Man 

ment  that  will  develop  the  brain  force  of  the  worker 
— that  will  cause  him  to  think.  A  mass  of  thinking 
human  beings  will  at  once  ask,  and  finally  demand, 
not  only  a  share  in  their  political  government 
but  also  in  the  ordering  of  their  industrial  lives. 
This  progression  is  inevitable  if  the  welfare  work 
is  clean,  honest,  and  truly  uplifting.  In  no  case 
has  there  not  been,  as  a  sequence  to  welfare  work, 
a  demand  for  a  greater  share  in  the  fruits  of 
the  business.  Every  one  of  the  institutions  which 
has  led  in  bettering  the  physical  and  mental  wel- 
fare of  the  workers  has  eventually  granted  higher 
wages,  profit  sharing,  stock  ownership,  or  all  of 
them — either  by  compulsion,  in  order  to  quiet 
labor  troubles,  or  voluntarily  by  reason  of  the 
fairness  of  the  executives.  I  have  particularly 
in  mind  the  United  States  Steel  Corporation,  the 
Ford  Company,  the  National  Cash  Register  Com- 
pany, and  the  Filene  Store.  The  Filene  Store  is 
more  advanced  than  any  of  the  others  and  has 
already  (I  think  inevitably)  passed  on  to  a  kind  of 
informal  democracy  and  I  take  it  that  in  every 
other  institution  distinguished  for  its  humanity, 
the  evolution  will  be  similar.  For  to  me  Indus- 
trial Democracy  is  not  a  drastic  revolution  but 
an  inevitable,* resistless  evolutions. 


CHAPTER  X 

KM  PINC     MIVF     I  III     COMMIMIV    SPIRIT 

ON  K  of  tin-  several  objects  of  Industrial  De- 
mocracy is  to  eliminate  the  necessitv  for  the 
close  supervision  of  employees  by  abolishing  "work- 
ing for"  and  putting  in  its  place  "working  with." 
Thus  the  mimls  of  the  executives  as  well  as  of 
the  workers  are  freed  from  burdensome  routine 
and  enabled  to  express  themselves  in  their  fullness. 
That  is  what  has  always  happened — as  the  inci- 
dents which  have  been  related  bear  witness.  Hut 
it  must  not  be  imagined  from  this  that  Industrial 
Democracy  is  a  kind  of  perpetual  motion  and  that 
once  started  it  w  ill  go  on  of  itself  forever. 

The  underlying  thought  is  the  change  in  mental 
attitude  by  having  all  parties  to  the  work  cooper- 
ate toward  the  same  end.  1  he  machinery  of 
democracy  keeps  alive  the  spirit  of  cooperation 
by  us  assurance  of  the  universal  squar--  deal;  the  ^ 
people  can  expre.-.s  themselves  m  their  forums  — 
they  cannot  complain  that  thev  have  wrongs 
without  redress  cr  that  thev  have  ideas  to  vhich 


214  Man  to  Man 

none  will  pay  attention.  Having  an  opportunity 
'  for  expression,  their  minds  are  open  for  ideals; 
they  have  founded  their  organization  upon  the 
ideals  of  Justice,  Cooperation,  Economy,  Energy, 
and  Service.  They  will  want  to  carry  these  ideals 
into  their  work  and  here  it  is  that  the  qualities  of 
leadership  on  the  part  of  the  executives  will  find 
wonderful  opportunities. 

It  takes  time  to  make  ideals  second  nature; 
some  of  the  men  reach  that  point  quickly,  but  the 
more  suspicious  (and  there  are  as  many  suspicious 
employees  as  employers)  will  doubt  for  months 
and  perhaps  for  years.  It  is  to  convert  the  doubt- 
ers and  to  stimulate  the  believers  that  some  writ- 
ten evidence  of  what  is  going  on  should  continually 
be  in  circulation. 

First,  the  full  platform  should  be  in  the  hands 
of  every  person  connected  with  the  establishment; 
it  should  be  posted  on  every  bulletin  board;  it 
should  be  so  much  about  that  no  one  can  forget 
its  existence.  Second,  the  proceedings  of  the 
various  bodies  in  so  far  as  they  can  well  be  pub- 
lished should  be  given  in  abstract  to  the  people. 
Let  them  know  what  is  going  on  and  especially 
tke  decisions  of  moment  to  them;  it  is  not  well  to 
publish  the  full  minutes,  because  that  tends  to 


Indusiri.il   Democracy  215 

curtail  discussion;  but  a  general  "newspaper  ac- 
count" of  the  proceedings  can  In-  distributed. 
thud,  the  messages  from  tin-  management  to  the 
men  should  be  given  all  possible  publicity:  they 
may  be  messages  of  any  kind  so  long  as  they  show 
the  people  what  the  company  is  doing  and  conse- 
quently make  them  feel  that  they  are  a  part  of  the 
company  in  the  fullest  sense.  Let  them  know 
something  of  sales  and  policies  so  that  they  cannot 
take  the  attitude  that  any  part  of  the  orgam/a- 
tion  is  without  interest  to  them.  Interest  is 
founded  upon  knowledge.  It  helps  a  worker  to 
know  what  a  salesman  is  up  against.  I  here  are 
no  high  board  fences  separating  the  departments 
of  a  well-organized  business. 

In  short,  it  vitally  helps  toward  a  better  common 
understanding  and  interest  if  there  is  a  continual 
stream  of  communication  among  all  parts  of  the 
orgam/.ation.  From  the  nature  of  things  this 
communication  should  be  written  as  well  as  oral, 
in  order  that  it  may  have  an  entire  audience.  The 
end  is  to  beget  mutual  confidence,  which  is  only 
another  way  of  saying  that  it  is  necessary  con- 
tinually to  advertise  Industrial  Democracy  to  every 
member  of  the  organization. 

Advertising  has  lorn;  been  recognized  by  Indus- 


216  Man  to  Man 

trial  leaders  as  a  powerful  means  for  quickly 
building  good-will  among  their  customers,  but 
many  have  failed  to  realize  that  it  can  be  used 
just  as  effectively  for  creating  good-will  among 
the  men  who  make  the  products. 

Advertising  for  this  purpose  can  take  the  fornv 
of  printed  bulletins,  letters,  house  organs,  pay 
envelope  enclosures,  or  any  other  form  that  seems 
advantageous,  and  their  issuance  should  at  all 
times  be  under  the  supervision  of  the  Cabinet. 
They  should  be  couched  in  simple,  direct  language. 
They  should  be  written  as  man  to  man.  They 
should  carry  absolute  sincerity  in  every  line. 
They  should  show  a  real  desire  on  the  part  of  the 
owners  and  management  to  work  with  the  humblest 
employees.  They  should  carry  a  stimulating  and 
contagious  enthusiasm,  but  they  should  never 
be  mere  empty  "ginger"  words,  and  again,  care 
should  be  taken  that  there  be  no  "writing  down" 
to  the  people  or  any  other  evidence  that  the  man- 
agement considers  itself  mounted  on  a  pedestal 
or  occupying  a  pulpit. 

Part  of  this  printed  matter  may  be  addressed 
to  the  Senate  and  the  House  of  Representatives 
and  part  of  it  to  the  whole  mass  of  employees. 
That  addressed  to  the  lawmaking  bodies  should 


Industrial  Democracy  217 

earn,'  constructive  suggestions  for  the  working  out 
of  concrete  problems.  It  should  be  such  as  will 
give  the  members  of  those  bodies  a  broader  outlook 
and  assist  them  in  rendering  balanced  judgments. 
Such  matter  as  is  addressed  to  the  whole  body  of 
employees  should  be  friendly,  stimulating,  and 
upbuilding.  Whether  it  be  in  the  form  of  letters, 
bulletins,  house  organs,  or  notes,  it  should  carry 
an  atmosphere  of  complete  frankness.  In  these  •' 
pieces  of  good-will  advertising  you  can  state  ex- 
actly what  your  aims  are,  what  you  want  to 
accomplish,  and  why.  And  if  you  really  have  as 
sincere  a  desire  to  build  up  your  workers  as  to 
build  up  your  business,  they  will  soon  become 
fully  conscious  of  ir;  and  there  is  no  question 
a»  to  the  response  you  will  get.  If  you  consider 
your  workers  merely  from  the  standpoint  of  the 
dollars  you  can  make  out  of  their  skill  and  muscle, 
they  will  think  of  nothing  but  rhe  dollars  they  can 
get  from  you.  They  will  return  to  you  what 
you  £itr  ihsm.  Treat  them  as  though  they  are 
antagonists  and  you  will  get  antagonism  all  day 
long  and  overtime  besides.  Hut  show  them  you 
believe  in  them  and  they  will  believe  in  you.  Show 
them  you  have  their  interests  ar  heart  and  they 
will  take  an  intsrtst  in  von.  Show  them  that  YOU 


2i 8  Man  to  Man 

believe  they  have  intelligence  and  fairness,  ambi- 
tions and  ideals,  and  you  will  find  that  they  do 
have  them. 

If  the  factory  is  a  large  one,  the  house  organ 
may  require  an  organization  to  handle,  but  the 
occasional  copy  is  better  done  on  a  multigraph  be- 
cause then  it  may  be  gotten  out  quickly  without  the 
delays  of  a  printer  and,  in  addition,  there  need  be  no 
fear  that  more  or  less  intimate  communications  will 

reach  the  eyes  of  those  for  whom  they  were  not 
t 
intended.     A  stale  message  is  not  worth   much 

and  often  executives  are  deterred  from  saying 
what  is  in  their  minds  because  they  know  that  by 
the  time  the  words  are  printed  they  may  not  be 
pertinent.  By  the  multigraph  method  you  get 
immediate  action,  before  the  subject  has  grown 
cold — putting  the  circulars,  bulletins,  or  notes 
into  the  workers'  hands  on  the  same  day  the  need 
arises — if  necessary  within  an  hour  or  two. 

Mr.  Charles  M.  Schwab  has  said  that  the  two 
most  powerful  forces  for  accomplishment  in  the 
industrial  world  are  rivalry  and  enthusiasm.  And 
these  forces  can  be  put  to  work  in  any  establish- 
ment. As  I  have  previously  stated  in  this  book, 
high  wages  are  not  alone  sufficient  to  keep  men 
contented  or,  which  is  the  same  thing,  to 


Industrial    Democracy  219 

them  to  pur  their  hearts  into  their  jobs.  We  are 
all  vain.  \Ve  all  warn  the  approval,  respect,  ami 
prarse  of  our  feilowmen.  Therefore,  it  a  woikei, 
a  gang,  or  a  department  does  something  excep- 
tional, give  the  teat  all  publicity.  (Jive  a  perfectly 
natural  ami  wholesome  vanity  some  thin:!;  to  feed 
on.  Nothing  is  more  stimulating.  Nothing  i-> 
better  calculated  to  bung  our  hidden  capabilities 
in  men  and  women  who  have  previously  gone 
along  in  a  twilight  ot  hopeless  drudging. 

When  a  department  \sins  the  tlag  for  the  period, 
print  the  names  of  the  people  in  that  department 
and  tell  how  and  why  they  effected  their  econo- 
mies. If  a  dividend  is  above  the  average,  explain 
how  it  came  about  and,  if  it  is  below  the  aveiage, 
then  likewise  give  the  facts  with  some  suggestions 
as  to  how  another  low  dividend  can  be  prevented. 
'I  he  whole  factory  is  always  the  better  for  know  ing 
just  what  it  is  doing.  I  do  not  stress  quantity 
production;  I  think  that  quantity  is  wholly  sec- 
ondary to  quality  and  that  when  quality  is  the  first 
consideration  quantity  will  tlow  of  itself.  But 
publish  the  quantity  records,  too,  it  quantity  be 
needed. 

The  big  thing  is    to    keer> 
work,  tlic  spirit  akin  to  the  old 


22O  Man  to  Man 

working  together  to  produce  the  best  product 
of  its  kind  at  trie  price.  And,  in  order  to  accom- 
plish this,  the  power  of  the  written  word  must  not 
be  neglected 


CHAPTER  XI 

PITMM;  IAIIOR  uruiM)  AMI  RICA 

IHAYK  touched  but  lightly  upon  that  phase  of 
Industrial  Democracy  which  is  really  the  most 
important  its  function  in  helping  to  make 
Anu-nca  a  nation. 

A  nation  is  something  more  than  a  ^eo^raphical 
division;  it  is  a  spiritual  unity  of  individuals.  A 
mere  joining  at  the  top  does  not  make  a  nation. 
Russia  was  joined  only  at  the  top;  its  various  dis- 
cordant elements  were  held  together  only  by 
force  and  the  moment  that  the  grip  loosened  the 
separate  nationalities  wmt  their  several  ways. 
There  is  a  similar  situation  in  the  Dual  Kmpire. 
Through  hundreds  of  years  the  various  national- 
ities therr  have-  not  assimilated,  they  have  no 
common  aim,  and  no  common  spirit.  A  C'zecho- 
Slovak  hates  an  Austrian  more  bitterly  than  a 
Frenchman  hates  a  German. 

Here  in  America  we  have  not  had  to  contend 
with  distinct  nations  preserving  their  national 
entities  within  our  borders.  \\  e  have  stretches 


222  Man  to  Man 

of  country — particularly  in  the  West — where  most 
of  the  inhabitants  belong  to  a  particular  nation- 
ality and  preserve  in  a  degree  the  fatherland 
language  and  customs.  We  have  had  districts  ii\ 
which  English-speaking  schools  failed  for  want  of 
attendance;  but  in  no  case  have  we  had  to  deal 
with  alien  inhabitants  on  a  purely  geographical 
basis.  Our  alien  minded  are  scattered  through 
the  whole  country  joining  in  small  groups  here 
and  there  (small  that  is,  when  considered  in  re- 
lation to  the  total  population)  and  as  political 
units  they  are  negligible.  Our  problem  is  not 
one  of  definite,  sectional  alienism,  nor  even  of 
making  the  American  spirit  predominate.  For, 
when  put  to  the  choice  between  loyalty  and  dis- 
loyalty, loyalty  always  wins.  But  a  subtle,  al- 
though very  real,  difference  exists  between  actual 
disloyalty  and  a  failure  to  grasp  the  spirit  of 
America. 

Disloyalty  is  a  defiance  and  may  be  dealt  with 
by  law,  but  no  law  can  be  framed  to  create  a 
common  Americanism,  a  knowledge  of  American 
ideals,  and  a  wholesome,  whole-hearted  interest 
in  their  extension.  We  cannot  touch  spiritual 
matters  by  law,  we  can  only  enforce  a  lip  service, 
and  lip  service  will  not  cause  a  man  in  any  emer- 


Industrial   Democracy  223 

gency  to  tlunJjjJjjH  that  he  js  an  American  arid 
only  secondly  that  he  is  an  individual  Yet  that 
is  precisely  the  spirit  that  we  must  have  in  order 
to  attain  a  trulv  united  America. 

We  have  not  that  united  America  today;  we 
have  an  encouragingly  large  number  of  true  na- 
tionals, but  also  we  have  a  dangerously  largr  num- 
ber of  half-baked  nationals  and  a  big  class  of  splut- 
tering, phrase-loving,  wholly  unworthy,  inter- 
nationals -men  who  are  proud  to  be  without  a 
country.  They  are  not  confined  to  any  one  class 
or  to  any  one  particular  social  order.  1*1  ie  em- 
ployer who  profiteers  in  war  time  is  nor  a  whir 
better  and  probably  he  is  worse  than  the  work- 
man who  profiteers  by  striking  in  the  midst  of  the 
manufacture  of  vital  munitions.  \Ve  have  found 
that  we  have  such  employers  and  such  employees. 
We  have  erred  in  directing  all  of  our  efforts  at 
Americanization  towards  the  employees,  simply 
because  there  happen  to  be  more  of  rhem  than 
there  are  employers.  I  know  of  one  employer  on 
the  East  Side  in  New  York  who  discharged  a 
worker  for  taking  time  oft  to  become  naturalized! 
Un-Amencanism  is  not  confined  to  any  class; 
you  will  find  it  among  the  rich  and  among  the 
poor.  It  may  take  the  form  of  lukewarm  loyalty. 


224  Man   to  Man 

or  again  it  may  be  a  professed  loyalty  to  the  coun- 
try as  such,  but  with  a  positive  disregard  of 
the  ideals  that  dominate  its  foundation.  Forcing 
employees  to  vote  for  certain  measures  and  can- 
didates is  spiritually  quite  as  disloyal  as  cursing 
the  country.  What  is  the  difference  between 
jumping  on  the  American  flag  in  public  and 
flouting  our  Bill  of  Rights  by  forcing  a  kind  of 
servitude  upon  workers?  There  is  a  legal  and 
circumstantial  difference,  of  course,  but  is  there 
any  particular  difference  in  degree  of  Un-Ameri- 
canism? 

We  have  little  to  guide  us  in  the  future.  We 
do  not  know  whether  after  this  war  we  shall  be 
able  to  recognize  the  world  that  we  are  living  in. 
Some  social  changes  will  undoubtedly  come  about; 
they  may  be  drastic  or  they  may  be  gradual;  more 
probably  they  will  be  gradual.  But  one  thing  is 
certain.  The  prosperity  of  any  country  will 
depend  upon  its  ability  to  make  and  to  sell  with 
the  highest  possible  efficiency.  Of  course  that 
has  been  the  rule  in  the  past,  but  we  in  America 
have  not  felt  it  so  keenly  because  we  have  not 
been  a  world-competitive  manufacturing  nation 
and  our  natural  resources  were  so  great  that  we 
could  waste  a  deal  of  them  and  still  have  enough 


Industrial   Democracy  225 

lo  sc!l  and  live  on.  \S  e  arc  now  a  manufacturing 
nation  the  greatest  in  tin-  world.  <>iir  factories 
have  been  so  extended  that  I  think  working  full 
tune  we  could  supply  all  flu-  nerds  of  our  people 
with  six  months  of  operation.  Bur  we  cannot 
work  only  half  tin-  vear  and  continue  prosperous. 
\\  e  must  hnd  some  way  to  take  up  twelve  months 
of  efficient  production  that  is,  we  must  find  new 
markets  for  our  products  and  those  markers  will 
have  to  he  without  our  own  holders.  In  other 
words,  to  imd  an  outlet  for  the  full  yearly  produc- 
tion, we  shall  have  to  he  prepared  to  make  and 
to  sell  more  efficiently  than  other  nations. 

\Ve  shall  not  breed  a  national  spirit  without 
national  prosperity;  the  one  begets  the  other. 
If  we  have  a  real  national  spirit  we  shall  have  a 
fundamental  prosperity;  if  we  have  a  fundamental 
prosperity  we  shall  have  a  real  national  spirit. 
Perhaps  this  is  utilitarian  reasoning,  but  there  is  a 
utilitarian  background  for  most  ot  our  ideals. 
It  is  very  difficult,  although  not  impossible,  for  a 
wife  to  love  a  husband  who  will  not  support  her. 
It  is  even  more  difficult  for  children  to  pay  homage 
to  parents  who  think  that  their  whole  duty  lias 
been  performed  when  they  have  brought  the 
children  into  the  world.  Therefore,  I  think  that 


226  Man  to  Man 

Americanism  is  a  reciprocal  relation;  it  is  a  give- 
and-take  proposition.  The  quickest  educator  in 
the  American  spirit  is  the  practical  realization 
that  following  American  ideals  produces  both 
material  happiness  and  prosperity. 

I  have  tried  to  show  in  the  preceding  page? 
that  Industrial  Democracy  has  produced  a  very 
large  degree  of  material  happiness  and  prosperity 
in  the  institutions  where  it  is  in  force.  The 
people  have  come  to  regard  the  factory  in  which 
they  work  as  their  factory  and  here  is  the  re- 
markable further  development — they  have  gone 
beyond  the  factory  in  their  awakened  spirit  and 
found  a  new  interest  in  the  country  in  which  they 
live. 

In  the  average  factory  the  man  who  does  not 
speak  English  finds  that  deficiency  of  compara- 
tively little  moment  because  notices  and  orders 
are  given  to  him  in  his  own  language.  If  he 
learns  English  it  is  because  he  needs  it  outside  the 
factory.  But  in  every  case  of  Industrial  Democ- 
racy one  of  the  earliest  enactments  of  the  Senate 
and  House  is  always  a  rule  that  notices  and  orders 
shall  be  only  in  the  English  language.  They  pro- 
ceed to  force  a  knowledge  of  English — it  becomes 
an  essential.  Here  is  a  typical  speech  with  its 


liuiustri.il   Democracy  227 

English  unreviscd.  It  happened  to  have  bern 
made  in  the  Senate  of  a  textile  plant;  I  could  ckp 
others  of  similar  import  from  almost  air,  of  the 
installations: 

This  brings  up  something  that  occurred  in  mv 
department  through  lack  of  understanding  th  • 
English  language  I  had  one  man  who  t.i!L«<l 
English  fauly  well;  I  have  told  him  to  do  different 
things  and  he  would  say  'Yes,  I  understand.' 
Once  or  twice  I  let  him  go  and  he  did  just  the 
opposite*  of  what  I  li.ul  intended.  I  found  that  a 
little  more  explanation  was  necessary  and  some- 
times an  interpreter.  That  may  have  happened 
in  other  departments  where  employees  not  under- 
standing English  were  told  to  do  something  and 
seemed  to,  but  really  did  not  understand." 

The  people  themselves  have  asked  for  English 
classes  and  have  insisted  that  those  who  do  not 
speak  English  attend  them.  As  a  result  ot  learn- 
ing English  the  people  get  away  from  reading 
foreign  language  newspapers  and,  having  a  Senate 
and  House  of  Representatives  of  :  .^ir  own,  the 
doings  of  the  Federal  and  thj  State  legislative 
bodies  cease  to  be  mere  abstractions.  1  hev 
know  what  their  o\v;i  Senate  and  House  do  tor 
them  and  they  read  of  the  public  bodies  in  the 


228  Man  to  Man 

same  spirit.  Government  ceases  to  be  abstract 
and  impersonal  and  becomes  something  which, 
vaguely  at  first,  but  then  more  and  more  defi- 
nitely, is  a  part  of  their  lives.  A  man  who  sits 
as  a  representative  in  a  factory  House  has  a  pretty 
fair  idea  of  the  situation  of  his  Federal  representa- 
..  tive  and  further  than  that,  he  gains  out  of  his  new 
experience  a  rule  of  measurement  to  determine 
whether  his  political  representative  is  or  is  not  a 
faithful  public  servant. 

In  passing  from  a  regard  of  the  employer  as  an 
uncontrollable  autocrat  to  a  recognition  of  him 
as  the  executive  of  his  own  best  interests,  he  like- 
wise makes  a  political  progression  from  regarding 
the  government  as  something  set  up  merely  to 
punish  to  something  which  exists  by  reason  of  the 
exercise  of  his  own  will  to  reflect  and  administer 
his  own  best  interests.  He  thus  grasps  the  phi- 
losophy of  representative  government — he  catches 
the  American  spirit. 

I  doubt  if  we  can  teach  Americanism;  I  doubt 
if  the  clearest  possible  knowledge  of  the  workings 
of  our  institutions  will  give  the  spirit  behind  them. 
We  have  got  to  practice  what  we  preach — all  of 
us.  And  if  we  take  what  we  think  is  the  spirit 
of  Americanism  into  our  everyday  relations,  will 


Iiulustri.il   Democracy 

it  not  spread  into  our  political  relations  and  tin: 
give  us  a  solid  American  front  ? 

That  is  the  phase  of  Industrial  Democracy  that 
transcends  all  others. 

present  Industrial  Democracy/ 

/.  As  an  Amtricani~in%  jofct, 

2.  As  an  industrial  union. 

. L_ ._^-X 


PUBLISHERS'  NOTE 

The  Publishers  desire  to  add  that  industrial 
organizations  contemplating  the  installation  of 
Industrial  Democracy  and  desiring  more  informa- 
tion than  is  contained  in  this  book  may  address 
Mr.  John  Leitch,  512  Fifth  Avenue,  New  York  City. 

THE  PUBLISHERS. 


A1TKNDIX 


APPENDIX  ONE 

HUMM   .S    I'.il.H  V 
OF 

TICK   PACKARD  COMPANY 

\Vc,  the  Employes,  Othcers  .uul  Dim-tors  of  the 
Packard  Company,  tecogm/mg  th.ir  "Justice  is  the 
greatest  pood  and  Injustice  the  gieatest  evil. "  do  here- 
by lav  and  subscribe  ro,  as  the  fust  conu-r-stone  of 
our  Policy,  this  greatest  of  .ill  good, 

Jt'STICE 

I  lie  fullt  sr  meaning  of  tins  word  sh.ill  he  the  hasis 
o|  .ill  our  business  ami  personal  dealings  between  our- 
selves .is  individuals,  between  our  comp.my  .uul  those 
of  whom  v.  e  buy  and  between  our  company  and  those 
to  whom  \\ e  sell. 

Justice  sh.ill  're  t!u  nrst  Corner-stone  upon  v.huh  we 
agree  and  determine  f  >  constiuct  bfo.idel  character 
as  individuals  and  broader  coninu'ic«-  as  an  ir.stirut;  >n. 

\\  e   recogi%.i/e   that   justice   to  i  l.is   nece\si;a:es 

taking  advantage  of  every  opp^i  ni::i;  \    t  >  do  the  be^t 
that    is    in    us,    and    each    da\     unpnne    that    i,:' 
ability. 


234  Appendix 

We  realize  that  merit  must  be  recognized  whether 
in  ability  or  merchandise.  With  this  certainty  we 
cheerfully,  hopefully  and  courageously  press  forward 
to  certain  and  unqualified  success. 

The  second  Corner-stone  of  Our  Policy  is 

CO-OPERATION 

To  accomplish  the  greatest  possible  results  as  indi- 
viduals and  as  an  institution  we  find  Co-operation  a 
necessity. 

We  recognize  that  business  without  Co-operation  is 
like  sound  without  harmony.  Therefore  we  determine 
and  agree  to  pull  together  and  freely  offer,  and  work 
with,  the  spirit  of  that  principle — CO-OPERATION. 

So  we  shall  grow  in  character  and  ability  and  develop 
individual  and  Commercial  Supremacy. 

Differences  of  opinion  shall  be  freely  and  fearlessly 
expressed,  but  we  shall  at  all  times  stand  ready  to  CO- 
OPERATE with  and  heartily  support  the  final  judg- 
ment in  all  matters. 

The  third  Corner-stone  of  Our  Policy  is 

ECONOMY 

As  each  moment  is  a  full  unit  in  each  hour  and  each 
hour  a  full  unit  in  each  day,  so  each  well  spent  unit  of 
thought  and  well  spent  unit  of  action  makes  for  each 
victory  and  the  final  success. 

When  the  hour,  the  day,  the  year  or  the  life  is  filled 


Appendix 

Tvith  \\rll  spent  ability,  ami  an  irutitution  is 
of  individuals  who  recogni/c  the  value  of  and  v>  u»c 
thc-ir  tiinr,  then  success  is  controlled  and  governed  urn! 
there  is  no  longer  that  vague  uncertainty  or  a  blind 
ami  unreasoning  hope. 

Life  is  like  a  bag  in  which,  each  moment,  we  place 
a  unit  of  value  or  of  rubbish,  ami  our  prevent  and 
future  happiness  depends  upon  the  content*  of  that 
bag. 

Recognizing  that  ECONOMY  is  time,  material  ami 
energy  well  spent,  we  determine  to  make  the  !>esr  use 
of  them,  and  so  shall  time,  material  and  energy  bo  <  am- 
our servants  while  we  become  the.  masters  of  our  dest  in  v. 

'I  he  fourth  Corner-stone  of  Our  Policy  is 

1  M  IU.Y 

As  Energy  is  the  p  -.vcr  back  o!  action,  and  action  is 
necessary  to  produce  results,  we  determine  to  IAI.R- 
(il/.K  our  minds  and  hands,  concentrating  all  our 
powers  upon  the  most  important  work  In-fore  us. 

I  bus  intensifying  our  mental  ami  physical  .U'IYIP,  , 
we  shall  "Make  two  grow  where  one  \»as,"  well  know- 
ing that  our  Individual  and  Commercial  Crop  (>t  Re- 
sults will  yield  in  just  proportion  to  our  productive 
ami  persistent  activity. 

1  his  power  ot  Lncrgy  directed  exclusively  toward 
sound  and  vigorous  construction  leaves  n->  loom  for 
destruction  and  reduces  all  torir.s  .t  u  stance. 


236  Appendix 

Having  set  in  our  Business  Policy  the  four  Corner- 
stones of  JUSTICE,  CO-OPERATION,  ECONOMY 
and  ENERGY,  we  are  convinced  that  the  super- 
structure must  be 

SERVICE 

We  believe  that  the  only  sure  and  sound  construction 
of  success  as  an  individual  or  an  institution  depends 
upon  the  quality  and  quantity  of  SERVICE  rendered. 

We  neither  anticipate  nor  hope  to  be  unusually  fa- 
vored by  fortune,  but  are  thoroughly  persuaded  that 
fortune  favors  the  performer  of  worthy  deeds  and  of 
unusual  service,  and  we  therefore  determine  that  our 
days  and  our  years  be  occupied  with  such  performance. 

Quality  shall  always  be  the  first  element  of  our 
SERVICE  and  quantity  shall  ever  be  the  second 
consideration. 

Thus  shall  we  establish  not  only  the  reputation  but 
the  character  of  serving  best  and  serving  most. 

Therefore,  by  serving  admirably,  we  shall  deserve 
and  receive  proportionately. 


APPENDIX  TWO 

RiiFs  (JoviRMNc.  l.Mn.ovn  s* 

(,KM   MM. 

Iii  welcoming  you  as  one  of  us  -as  a  newcom'-r  in  the 
PRINT/KSS  f.imi!v  -we  hand  you  thu  l..,-,k!«-f. 
not  so  much  as  a  book  <>l  rules  to  govern  \niir  c<  :i  iuct, 
hut  as  a  word  of  greeting  -a  means  t»  tell  \.»u  .1  little 
more  ahout  us,  that  you  may  know  wh.it  we  h.ivt-  thus 
far  cloiu-  for  ourselves  ami  that  you  may  hetrer  mulrr- 
staiul  what  we  are  trying  to  do  ami  so  i;i\c  us  \oiir 
help  to  reach  our  goal. 

\\  e  can  only  accomplish  something  \vhen  \M-  .1!! 
work  in  harmony,  in  a  true  co-operative  spirit.  1  iu K  - 
fore,  we  must  learn  to  recogm/e  the  discipline  <>t  this 
factory  as  something  that  serves  t»  guule  us  .nul  help 
us  by  laying  down  the  same  rules  t»r  .ill.  1  rv  and  help 
this  discipline  by  observing  these  rule-;. 

Read  the  book  carefully,  and  if  then-  is  anything 
that  you  do  not  understand,  ask.  the  head  <>t  v»ur  de- 
partment or  the  S  >cial  Secretary  who  will  be  glad  to 
give  you  further  information. 


cil  for  their  own  ^uiJjrKc  l>v  rhc  employed  of  the  l't;ntt 
BicJcrmjn  Co. 


238  Appendix 

We  hope  that  your  stay  with  us  will  be  permanent 
and  a  pleasant  and  most  profitable  one. 

We,  the  employees  of  The  Printz  Biederman  Com- 
pany, acting  with  the  Cabinet,  which  consists  of  the 
officers  of  the  firm,  have  adopted  these  four  principles 
as  the  corner-stones  of  this  business,  and  in  welcoming 
you  as  one  of  us,  ask  that  you,  too,  subscribe  to  them 
and  observe  them  faithfully: 

JUSTICE 
CO-OPERATION 

ECONOMY 
ENERGY 

By  so  doing,  you  will  be  furthering  your  own  interest 
and  the  interests  of  all  the  rest  of  us. 

RULES  GOVERNING  EMPLOYEES 

Applications  and  Commencing  Work: — When  you 
first  report  for  work,  the  Superintendent,  or  his  assis- 
tant, will  introduce  you  to  your  supervisor,  who  will 
assign  to  you  your  place  and  your  work.  You  will 
later  call  on  the  head  of  our  social  service  work,  who 
is  also  in  charge  of  the  hospital  room,  the  purpose  of 
which  interview  will  be  to  explain  to  you  the  object  of 
that  department  and  the  work  it  is  carrying  on.  Your 
application  card  will  contain  your  address,  and  any 
change  in  address  that  you  may  make  after  commenc- 
ing work  is  to  be  immediately  reported,  without  fail> 


Appendix  JV; 

to  your  foreman,  so  that  hr  may  1:1  turn  rrp<>rr  it  to 
the  Pa\  roll  Depart inrnr. 

//•  :<rr  .;*;/  f>.-v.': '•:.'  Your  working  h  «urs  will  l><- 
frmn  7:1 ;  to  1 1  ;o  \.  M  .  a-i  !  t't  .-n  i ;  i ;  r  ,  •  } ;  I'  M  , 
excrpt  Saturday,  when  tin-  -.Mirkm.;  hour,  -.vill  in  i'r.-m 
7:1;  A.  M.  to  !  l  ;  )  \.  M  .  ni.tk:'^  .1  t'lt.il  .i["  .p  IMUCS 
prr  week.  1  IH-SI-  hours  ;''>\rr:i  .ill  tlcpjrtnirnrs  r\itpt 
other  departments,  \\hosr  worLni^  h  >\n\  .K«  t'rotn  ":4i 
A.  M.,  until  ii:;o  A.  M.,  an>l  h'>;n  I  :  ;  )  to  5:^0  I'. 
M.  Hours  on  Satur\iav  tiorn  7:4;  A.  M.  to  i:  >j  M. 
You  will  not  IK-  rr^mrvil  to  \vork  oji  S.irur.l.iv  aftrrn«»:i 
«>r  on  Sunday  cxcrpt  in  t-riHT^cru'v.  It  is  not  t!u-  in- 
tention to  a:>L  anyone  to  work  overtime,  bur  %'iouM  if 
ever  he  necessary  to  do  this,  the  overtime  w-iik.  v.  ill 
In-  paid  tor  at  the  rate  of  time  and  a  half  for  length  of 
overtime  put  in.  An  ( ).  K.  lor  this  overtime  wotk  ->»i!l 
have  to  he  turned  m  hy  the  t"reman  <>t  your  depart- 
ment to  the  Payroll  Department  so  th.ir  u,  n  tur:i, 
can  credit  you  with  correct  amount  ot  overtime. 

Timf  Rtcorcting:—\uii  wi\\  he  assigned  a  tune  card 
on  which  to  register  y«"ir  time  of  gom^  to  and  c ••mini; 
from  work.  1  he  payroll  ottice  %\ill  collect  t!ie  <..ir>ls 
every  Wednesday  for  the  purpose  of  making  out  your 
pay.  I  he  Payroll  Department  requites  two  djvs  to 
figure  up  the  pay  ot  the  many  employees,  so  that  the 
pay  you  receive  on  Saturday  will  represent  what  you 
have  earned  up  to  \\ednesdav  mi;ht.  Lutene%s  \\ill 
be  deducted  for,  as  will  aiv>  ahsence. 


240  Appendix 

Holidays: — The  following  legal  holidays  will  be  ob- 
served throughout  the  plant  and  will  be  paid  for  just 
as  if  you  were  at  work:  New  Year's  Day,  Decoration 
Day,  Fourth  of  July,  Labor  Day,  Thanksgiving  Day, 
Christmas  Day,  and  PRINTZESS  Day. 

Advancements: — Your  advancement,  and  pay,  in 
every  way  will  depend  entirely  on  the  quality  of  work 
you  do,  the  way  you  apply  yourself  to  your  work,  and 
your  attendance. 

The  practice  of  loitering  is  to  be  avoided  at  all  times. 

Do  not  visit  in  other  departments. 

Tools  and  Their  Care: — Workers  on  sewing  machines 
are  not  required  to  provide  any  tools  needed  except  a 
pair  of  scissors  or  shears.  There  is  a  deposit  required 
for  machine  foot,  shuttle  and  bobbin,  which  deposit 
is  refunded  on  surrender  of  these  parts.  Cutters  re- 
quire a  large  pair  of  shears,  yardstick  and  draw  knife. 
All  power  and  electrical  equipment  and  the  machines 
and  tools  needed  in  your  work,  except  the  above,  will 
be  furnished  you  free  of  charge  and  will  be  maintained 
by  the  firm  in  proper  working  condition.  Competent 
machinists  and  repair  men  are  employed  for  that  pur- 
pose, and  whenever  your  machine  or  tools  get  out  of 
adjustment,  you  need  only  notify  the  superintendent, 
or  your  foreman  or  forewoman,  who  will  instruct  the 
machinist  to  make  the  repairs  without  delay. 

Care  in  Handling  Materials: — The  material  used  in 
the  factory  being  of  a  nature  that  is  easily  injured,  you 


Appendix  .341 

must  he  c.irrful  in  the  use  of  oil  on  your  machine*  and 
refrain  from  bringing  any  eatables  to  thr  work,  n-.ni, 
or  to  cut  anywhere  throughout  thr  pLnr  <>rhrr  than  in 
the  dining  room  provulni  li»r  the-  purposr. 

llouif  rurthiitfs:  You  have  thr  ri^ht  to  p-irchatr 
garments  at  regular  wholesale  prur  for  \<>ur  wife, 
mother,  .sister,  or  daughter,  if  living  inulrr  the-  s.unr 
roof.  Before  making  such  pun  lust  %oii  \vill  obtain 
an  order  from  the  head  of  the  planning  department,  or 
in  his  absence,  from  the  head  of  the  sto«.L  department, 
and  this  order,  when  presented  to  the  nun  in  charge  of 
the  surplus  stock,  will  authori/e  him  to  \%.i:r  «>ri  \ou. 
'I  o  save  your  time  these  purchases  must  he  m.u!r  i!i;r- 
ing  the  noon  hour.  ^  our  purchase  \\ill  he  p.n  krd  up 
and  a  slip  will  he  mven  to  you  hy  means  ot  w!mh  \«\i 
can  ohtain  your  package  on  the  hrst  t1.*..r  from  t!u- 
floorman  when  leaving  at  night.  Sucli  s.ilrs  are  for 
Cash  only.  Purchases  ol  raw  materials,  such  as  lining, 
cloth,  etc.,  can  he  made  in  a  similar  manner  on  appli- 
cation to  either  of  the  above-named  department  heads 
for  n  purchase  order,  or  on  application  |.>r  s;uh  an 
order  to  the  head  of  the  purchasing  department.  v.ho 
will  direct  you  to  head  of  puce  poods  and  trimming 
department,  who  \\ill  wait  on  you. 

Circulation  of  .S'ui/rr;  *;:•»:;  c.  .:  I  he  circulation 
of  subscription  lists  for  any  purpose  is  discouraged. 
The  circulation  of  subscription  to  raffles,  m\  est  merits  or 
Speculations  of  any  nature  is  absolutely  prohibited. 


242  Appendix 

Fire  Precautions: — For  reasons  of  personal  safety 
and  in  accordance  with  orders  from  the  Fire  Marshal's 
office,  no  smoking  can  be  allowed  in  or  about  the  work 
room.  The  fire  drill,  which  will  be  signaled  by  gong 
on  each  floor,  is  for  the  prevention  of  panic,  and  the 
instructions  given  by  the  fire  drill  lieutenants  on  your 
floor  must  be  rigidly  followed  in  all  such  drills. 

Telephone: — Personal  messages  over  the  telephone 
during  working  hours  are  prohibited  except  in  cases 
of  urgent  necessity. 

Public  Discussion: — Such  information  as  comes  to 
you  in  the  course  of  your  work  is  of  interest  to  only 
yourself  and  your  fellow-workers  and,  therefore,  is  of  a 
more  or  less  confidential  nature.  It  is  expected  that 
you  will  refrain  from  discussing  publicly  outside  of  the 
factory  anything  pertaining  to  the  factory,  and  thus 
keep  from  violating  the  confidence  placed  with  you. 

Applicants'  Waiting  List: — We  often  find  it  neces- 
sary to  make  additions  to  the  force  of  employees,  and 
applications  are  always  welcome  from  favorable  work- 
men or  women.  If  you  have  any  friend  that  you  think 
might  want  a  position  here,  direct  them  to  our  employ- 
ment department,  even  though  they  may  at  the  present 
time  be  employed,  and  they  will  be  put  on  a  waiting 
list,  and  will  be  advised  at  the  first  opportunity  of  an 
opening. 

Example  and  Good  Fellowship: — Make  every  effort  to 
set  the  right  kind  of  example  in  courtesy,  energy, 


Append!*  243 

enthusiasm,  and  chrrrfuinr»  t»  tho-,r  around  v>u, 
cspev  -Lilly  to  Hew  employers.  A'.'.isf  fhrni  in  every 
wa\  th.it  you  can  an.urring  thru  <|  H-,?:  nv.  and  nuL- 
ing  them  feel  ar  ease.  1  M  the  ciu!  t  haf  .1  spirit  <.f  ;•  H,  i 
fellowship  may  prevail  throughout  the  f.uT.>ry  at  ji! 
tunes,  a  Print/ess  Ciotxl  fellowship  League  !-.u»  l-rrn 
fonncJ.  I  ho  purpose  of  tins  lej^ue  !•.  f->  e::  >ur^^<- 
a«.'>ju.uutaiice  aiul  friendship  with  ;..>ur  fellow-workers. 
AN  a  I'rnit/.ess  employee,  you  arc  a  me:n!><-r  of  tliis 


Economy:  —  A  ^reat  deal  of  needless  expense  is  i;u  ur- 
red  hy  the  allowing  of  t;.is  and  eleerriv-  li^hrs  to  hum 
when  they  are  no  longer  needed.  Hrlp  to  econ-imi/'- 
hy  turnmj;  out  th.ese  lm!its  when  they  are  no  1  >n^r; 
necessary.  Aside  Ironi  the  saving  itsc't,  ecotMi:u  i:: 
one's  own  make-up  is  a  tiling  to  he  cultivated.  I  .imps 
must  not  he  removed  from  hxtures  »  \irpt  hy  tin-  i  !••..:-.- 
ers  or  machinists.  Lconomy  in  the  UM-  <>t  lend  pc:'.c:!s, 
papt-r.  etc..  is  also  a  matter  that  is  p.  >r  usually  i^ven 
the  attention  it  deserves.  Kconomtzc  so  t.ir  .l^  p  >s 
in  the  matter  of  stati-n'.erN'.  supplies,  etc.  I  conmry 
in  the  use  of  raw  materials  is  also  a  thing  to  he  desired 
and  any  suggestions  that  you  offer  alone;  these  lines  are 
especially  entitled  to  reward. 

lnlfrdff>arimtr.i  C  >••:?•:  ;<»::'  \::\f>».  •:  -All  CvMnmunica- 
tions  Ix-twevn  departments  must  he  put  ir.t  >  the  out- 
going baskets  supplied  tor  that  purpose.  a;:d  will  he 
collected  hy  the  house  nieiienger  ai^.d  dii'nhutcd  trom 


244  Appendix 

one  department  to  the  other.  Rush  communications, 
however,  should  be  sent  by  special  messenger. 

Visits  from  Friends: — Do  not  have  your  friends  visit 
you  during  business  hours  except  on  urgent  matters, 
in  which  case  they  will  leave  their  name  with  the  floor- 
man  on  the  first  floor,  who  will  in  turn  send  it  to  the 
head  of  the  department  in  which  the  person  desired  is 
working. 

Publicity: — In  order  that  everybody  may  be  kept 
informed  of  whatever  of  factory  interest  there  may  be 
going  on,  there  is  on  every  floor,  near  the  elevator,  a 
bulletin  board  on  which  is  posted,  periodically,  matters 
of  general  interest.  Everyone  is  requested  to  make 
reference  to  this  board  from  time  to  time,  as  this  is  your 
way  of  keeping  yourself  informed  on  the  various  matters 
about  which  you  should  know.  Occasionally,  also, 
special  subjects  will  be  brought  to  your  attention  by 
means  of  slips  inserted  in  your  pay  envelope. 

Suggestions: — If  you  have  anything  to  suggest  in  the 
way  of  improvement  in  the  methods  of  work,  or  that 
will  add  to  the  comfort  and  benefit  of  your  fellow- 
workers,  or  that  will  correct  any  improper  existing 
condition,  give  us  the  benefit  of  your  thoughts.  You 
will  find  a  suggestion  box  on  every  floor,  near  the  ele- 
vator, and  blanks  on  which  to  write  your  suggestion. 
The  Suggestion  Committee  will  give  your  suggestion 
careful  consideration  and  if  it  is  considered  as  having 
merit,  you  will  receive  a  suitable  money  prize  as  a 


Appendix  245 

reward  for  your  efforts.  The  signing  of  your  name 
to  the  suggestion  is  encouraged,  although  not  iniiited 
on. 

Self  C'lffrnment: — Our  Senate  and  House  of  Rep- 
resentatives meet  each  week  for  the  consideration  of 
such  matters  as  have  to  do  with  the  betterment  of  con- 
ditions in  ami  about  the  plant  and  our  well-hring.  If 
you  know  of  any  matter  that  you  think  requires  atten- 
tion, bring  it  to  the  attention  of  your  representative  or 
your  foreman,  that  it  may  be  properly  brought  up 
before  the  House  of  Representatives  or  Senate  .it  the. 
time  of  meeting.  'I  he-  Senate  meets  on  Wednesday 
mornings  at  10:00  o'clock,  and  the  louse  of  Repre- 
sentatives meets  on  Fuesday  morning  at  10:00  o\!<«L. 
You  can  find  by  inquiry  tin-  representative  f. >r  your 
particular  department,  and  present  matters  of  interest 
to  the  House  of  Representatives  through  him.  1  here 
is,  also,  a  Betterment  Committee  to  whom  grievances  «r 
complaints  of  any  kind  should  be  made.  ^  our  repre- 
sentative can  tell  you  the  names  of  tin-  members  of  this 
committee. 

Soda!  .SVrfr.'jry: — Our  social  service  head,  who  is 
experienced  in  work  of  this  nature,  can  be  found  in  the 
hospital  room  office  at  all  times  from  the  hour  o!  ^.XD 
to  i  :oo,  except  on  Thursday,  on  \\hich  da\  she  is  there 
from  10:00  to  1:50  only.  Suggestions  that  particularly 
apply  to  the  social  work  \\ill  be  welcomed  by  her  and 
she  \\ill  be  glad  at  alltiir.es  t.»  !e  of  service  to  anyone 


246  Appendix 

seeking  advice.  You  may  obtain  from  the  social 
service  head,  for  purpose  of  vacations,  a  list  of  desir- 
able country  boarding  houses  with  location  and  terms. 

Dining  Room: — A  commodious  dining  room  with 
ample  seating  capacity  for  all  is  provided.  You  will 
be  assigned  a  permanent  place  where  you  can  leave  your 
lunch  when  you  arrive  in  the  morning.  The  dining 
room  is  also  provided  with  a  double  cafeteria,  on  the 
serve-self  system,  where  you  can  obtain  milk,  hot  coffee, 
tea,  etc.,  and  if  you  do  not  bring  your  lunch,  you  can 
obtain  wholesome,  well-cooked  hot  meals,  as  well  as 
sandwiches,  fruit,  pastry,  etc.  The  schedule  of  prices 
is  on  a  cost  basis.  In  order  to  lessen  the  amount  of 
work  for  the  dining  room  care-takers,  please  carry 
your  tray  and  used  dishes  to  the  kitchen  window  ledge 
when  through  eating. 

Washrooms,  etc.: — Ample  washroom  and  toilet  fa- 
cilities are  provided  for  all  floors,  and  should  at  all 
times  be  kept  in  clean  and  sanitary  condition.  It  is 
expected  that  all  employees  are  interested  enough  in 
conditions  around  the  factory  to  help  keep  them  so. 
Any  untidiness  or  disorder  should  be  promptly  reported 
to  the  head  of  the  social  service  work. 

Hospital  Room: — It  is  the  aim  to  have  everything 
about  the  factory  tend  toward  the  best  possible  con- 
dition of  health  for  employees.  To  that  end  a  hospital 
room  has  been  established  for  cases  of  illness  or  indis- 
position. In  such  cases,  please  report  to  your  super 


Appendix  .247 

vuor  or  foreman  and  thru  go  to  the  hospital  room 
where  thr  head  of  the  social  srr\t>r  work,  who  \\  a 
trained  nurse,  is  1:1  charge.  Any  rnrdical  aid  that  ihc 
can  render,  you  \\ill  nvnvc  frt-r  f>f  charge. 

/?^/f /?oom/:— Adjoining  thr  timing  r  1*1:11,  y<>u  will 
lirul  a  room  provided  with  chairs,  S«>L(S(  periodicals, 
nuga/mes,  etc.  Ilu-rv  is  alsn  ;i  pun<>  for  your  jnuisr- 
ment  .nul  recreation.  1  his  is  to  I*-  pljycil  onlv  ilurir  ^ 
the  mxw  h«)iir  betwcx-n  1 1  :;o  ami  I  :  : ;  ;  jiul  to  IK-  In  kc.l 
jt  all  other  times.  There  is  rx>  smoking  allowed  in 
this  rest  r<x)in,  nor  is  the  rating  <•{  IUIH!K-S  allowed 
there.  Anyone  desiring  quiet  for  reading  or  stuiKmi; 
during  the  noon  hour  can  use  the  meeting  room  on  the 
fifth  floor  next  to  the  hospital  room,  where  they  will  bc 
undisturbcd  and  free  from  intrusion. 

Lofkfrs:—Yor  the  hanging  away  ot  your  wraps.  :he 
social  scrvicv  head  will  provide  you  with  a  !  'vkrr  t  » 
which  you  will  have  a  key.  I  \vo  persons  \\;!I  UM  (>::e 
locker.  It  is  expected  ttiat  you  will  leave  r.  >  ii:M 
or  papers  in  the  locker,  as  proper  rivepracles  arc  pro- 
vided in  and  about  the  locki-r  room  tor  MIC!:  ariilr-.. 
A  deposit  of  25  cents  is  requited  to  insure  sa!c  return 
of  the  key. 

Librar,: — A  free  circulating  library,  branch  of  the 
Cleveland  Library,  is  maintained  in  the  social  "service 
department  office  where  l»<>ks  may  !><•  obtained  ui.vl 
exchanged  during  the  noon  hour.  I  !ic  hbunan  VM!! 
also  obtain  for  you  from  the  main  hbruiv  ar.v  KXJ'K 


248  Appendix 

that  you  may  desire  that  is  not  already  in  our  li- 
brary. 

Aprons: — Female  employees  may  purchase,  at  cost, 
if  they  wish,  large  aprons  for  use  in  their  work  and  so 
save  wear  and  tear  on  their  clothing.  Aprons  are  to 
be  obtained  at  the  social  service  department  room  on 
the  fifth  floor,  at  noon  on  Mondays  and  Thursdays, 
and  will  be  laundered  each  week  without  expense  to 
you. 

Towels: — On  Mondays  and  Thursdays  individual 
towels  will  be  distributed  in  the  basement.  A  de- 
posit of  15  cents  is  required  for  your  towel.  This 
towel  may  be  exchanged  for  a  fresh  one  without  cost 
twice  a  week,  at  noon,  on  the  above  days.  When 
finally  surrendering  your  towel  your  deposit  will  be 
returned. 

Umbrellas: — Umbrellas  can  be  borrowed  on  rainy 
days,  on  application  to  the  social  service  head.  These 
must  be  returned  the  following  day  or  their  cost  will 
be  deducted  from  your  envelope  on  the  following  pay- 
day. 

Lost  and  Found: — Any  articles  lost  or  found  should 
be  reported  to  the  head  of  the  social  service  depart- 
ment, who  will  take  what  steps  she  can  to  find  the  lost 
article  or  to  locate  the  owner  of  a  found  article  by  means 
of  the  bulletin  board,  etc.  Report  such  articles  im- 
mediately, as  delay  might  tend  to  counteract  this  de- 
partment's efforts. 


Appendix  24«> 

Knforcfmfnt  of  ,4b>?f  Rul/s:  —  It  is  rcqucitcd  that 
any  onr  noticing  thr  violation  <>t  any  •>(  thc\c  ruin 
rrjxirt  N.IIIIC  to  flic  hr.iti  <>f  the  lirpjrtrnrni  uitrrrttrd. 
Repeated  violation  <>|  rules  »>n  thr  purt  <>f  uny  «>tir  will 
mur  his  or  her  record  aiul  act  :i^.nnut  advancement. 


THE    LND 


DATE  DUE 


GAYLORD 


